This article explains the impact of the full enactment of the EU MiCA Act on the EU stablecoin market, including the OKEx exchange's response to regulatory demands to delist the USDT stablecoin issued by Tether, and the regulatory pressures and opportunities posed by MiCA. this article suggests that the EU will become a complete cryptocurrency regulatory jurisdiction, but will also face issues such as strict regulations and fines, restricted USD stablecoins, and NFTs being in a gray area.
•OKX: Responding to Regulatory Requirements
•The European Union's MiCA bill fully comes into force at the end of this year
•Status of the European Union Stablecoin Market
MiCA, the European Union's proposed crypto asset market law since 2019, will come into force after June this year, and is expected to make the European Union the first jurisdiction in the world to have tailored and comprehensive cryptocurrency regulations.
However, the introduction of the bill would also bring considerable regulatory pressure on stablecoins in European markets, with exchange OKEx set to delist trading pairs linked to USDT, the US dollar stablecoin issued by Tether, in Europe to make way for euro stablecoins, according to as reported by The Block this week.
OKX: Responding to Regulatory Requirements
Although OKX did not explain whether this initiative is directly related to the upcoming MiCA, according to a user named MartyParty, in an email he received, OKX said that this initiative is directly related to the upcoming MiCA:
Please note that due to regulatory requirements, USDT pairs in your region will no longer be available for trading, and in the future, the only USDT pairs available on the spot market will be USDT/EUR and USDT/USDC.
However, OKEx also added that only a small number of users will be affected and new euro pairs will be launched in the future:USDT can still make deposits and withdrawals, and also allows Over-The-Counter (OTC) trading.
At the same time, we launched more than 30 new Euro currency pairs.
The European Union's MiCA bill fully comes into force at the end of this year
MiCA, the European Union's crypto asset market law, which was previously scheduled to come into force in June this year, and come into full effect on December 30, has the following benefits:
•Legal certainty
•Appropriate rules for cryptocurrencies
•Credibility with thoughtful clients
•One license to operate throughout the European Union
•Attract investment
However, there are also the following negative effects:
•Strict rules and millions of euros in fines for mistakes
•Dollar Stablecoins Restricted
•NFTs are in a gray area and can be regulated
•It is unclear how law enforcement abroad will be carried out
Status of the European Union Stablecoin Market
The stablecoin market in the European Union is still in the early stages of development in the face of the upcoming stringent regulatory environment, and the stablecoins that exist today are stablecoins:
•EURC is issued by Circle, the issuer of the USDC stablecoin;
•Tether issues EURT;
•EURCV, a stablecoin launched by Societe Generale.
