As of today, the EU’s Markets in Crypto Assets (MiCA) regulation has officially come into effect, urging stablecoin users across the bloc to switch from non-compliant to regulated stablecoins.
This move is critical as the new rules prohibit any stablecoin from exceeding one million daily transactions for goods or services, whether these transactions are settled off-chain or on-chain.
YouHodler CEO Ilya Volka emphasizes the importance of this conversion for stability and regulatory compliance.
“Switching to regulated stablecoins like USDC ensures asset stability without affecting their value,” Volka explains.
He advises against moving stablecoins to offshore platforms to avoid legal and financial risks, including potential asset freezes by authorities.
Despite the push for compliance, the industry has expressed some concerns.
Tether CEO Paolo Ardoino points out the complexities and vulnerabilities introduced by MiCA.
He highlights that further discussions on technical implementation standards are essential to clear up uncertainties.
Binance has already taken steps in response to MiCA by restricting access to non-compliant stablecoins within the EU.
This indicates a proactive approach to align with the new regulations.
Beyond its immediate impact, MiCA is seen as a pioneering framework that other jurisdictions might emulate.
Coincover Head of Strategy Eleanor Gaywood believes that MiCA positions the EU at the forefront of integrating cryptocurrency innovations.
She notes that exchanges have been de-listing certain stablecoins in preparation for the new rules, reflecting ongoing confusion within the industry about compliance.
Starting June 30, crypto asset service providers are required to meet MiCA’s KYC/AML requirements, with full compliance expected by December.
This phased approach allows for adaptation but highlights the need for continuous dialogue between regulators and the industry to ensure smooth implementation.
