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The European Union (EU) has granted approval to 10 stablecoin providers under the Markets in Crypto-Assets (MiCA) regulation. However, the absence of Tether, one of the largest stablecoin issuers, has raised eyebrows. This development has sparked concerns about regulatory priorities and the future of the crypto market in Europe. Tether argues that the decision was hasty, while some industry experts warn that stringent regulations might weaken competitiveness.
Approved Stablecoin Providers and MiCA Compliance Process
The stablecoin providers approved by the EU include Banking Circle, Circle, Crypto.Com, Fiat Republic, Membrane Finance, Quantoz Payments, Schuman Financial, Societe Generale, StabIR, and Stable Mint. These firms have issued a total of 15 stablecoins pegged to the euro and the US dollar. The approval process was based on compliance requirements established by the MiCA regulations.
MiCA mandates that stablecoin issuers adhere to standards for transparency, reserve management, and consumer protection. With these regulations, the EU aims to ensure stability in the cryptocurrency market and boost investor confidence. However, Tether’s exclusion suggests that the regulatory framework may not be sufficiently accommodating for some major players.
Tether’s Omission and Market Implications
Following its non-approval by the EU, Tether has shifted its growth strategy outside of Europe. Reports indicate that the company is proposing to acquire a 51% stake in an energy firm in South Africa. Additionally, Tether continues to enhance its global brand visibility through sponsorship activities in the sports sector.
In response to its non-approval, Tether officials described the decision as “hasty and unnecessary.” While the company has not provided detailed explanations regarding its MiCA compliance process, it has suggested that strict regulations in Europe could stifle innovation within the sector.
Experts believe that MiCA’s stringent rules may lead some crypto companies to relocate their operations outside Europe. Natalia Łątka notes that local firms tend to seek alternative markets to evade these regulations. Increasing concerns are emerging that Europe may lose its competitive edge in the cryptocurrency market.
