MiCA: A Game Changer for EU Crypto Regulations
During his speech at the European Blockchain Convention in Barcelona, Patrick Hansen, Strategy Director at Circle in Europe, commented on the sea change that could shortly happen in the crypto and stablecoin market in the Union. He reiterated that MiCA will be an essential factor in driving such growth of the bloc’s Markets in Crypto-Assets Regulation.
MiCA is a broad-ranging EU law in pursuit of regulating digital assets that lays out a clear roadmap for the government, institutions, and investors alike. According to Hansen, MiCA marked the beginning for such an industry and set the tone for a more organized and safer crypto market throughout the European Union.
Crypto Exchanges and Stablecoins
Under MiCA, strict standards await crypto exchanges, and reserve limits apply for the first time to stablecoins. One of the largest stablecoin issuers, Circle’s USDC, was granted one of the first licenses under the new regime. Hansen emphasized that this was a compliance journey of a very different sort-one that included a 24-month dance with EU regulators.
Besides the success of USDC, Circle obtained an Electronic Money Institution license in France, licensed under the country’s banking regulator, Autorité de Contrôle Prudentiel et de Résolution.
EURC Growth Under MiCA’s Framework
Hansen emphasized the outstanding growth of Circle’s euro-pegged stablecoin, EURC, whose market capitalization was up 60-70% since its approval in July. The current market capitalization of EURC stands at over 67 million euros, a figure Hansen expects to go higher as the MiCA framework takes hold in the market.
We believe that, in the European Union, not just for our euro stablecoin, but for euro stablecoins overall, we can expect significant growth in the next 12 months,” said Hansen.
Circle’s Expanding Global Presence
As Circle tightens its grip in Europe, its chief executive officer, Jeremy Allaire, lays plans to go public in the U.S.-via an IPO. Recently, it moved its global headquarters to One World Trade Center in New York City, right shoulder-to-shoulder with some of Wall Street’s big boys, like Goldman Sachs.
With the right moves made and MiCA right behind its back, Circle is well-positioned to fully capitalize on the forecast growth of crypto and, in particular, stablecoin markets within the EU.
