The European Union (EU) approved 10 stablecoin providers within the scope of crypto asset markets regulation (Mica). However, Tether, one of the largest stablecoin exporters in the market, was not on the list. This development has created question marks about regulatory priorities in Europe and the future of the crypto currency market. Tether, arguing that the decision is hasty, some experts from the sector said that strict arrangements can weaken the competitiveness.
Approved stablecoin providers and Mica Adaptation Process
Stablecoin providers approved by the EU include Banking Circle, Circle, Crypto.com, Fiat Republic, Memrane Finance, Quantoz Payments, Schuman Financial, Societe General, Stabir and Stable Mint. These companies have issued a total of 15 stablecoins fixed to Euro and US dollars. During the approval process, the adaptation conditions determined by the Mica regulations were taken as basis.
Mica requires that Stablecoin exporters comply with transparency, reserve management and consumer protection standards. With these regulations, the EU aims to stability in the crypto currency market and to increase investor confidence. However, the fact that Tether was out of the list brought comments that the regulatory frame was not met sufficiently by some major players.
On a single screen instant prices, important data, news, latest developments, comments and discussions at Chat! Come right away from your eyes!
Tether’s not on the list and market effects
Tether turned to a growth strategy outside Europe after not being approved by the EU. The company reportedly offered to obtain a 51 %share in an energy company in South Africa. At the same time, Tether continues to increase the global brand visibility with its sponsorship activities in the sports sector.
When Tether did not get approval, the company officials described this decision as “hasty and unnecessary”. While the company did not make a detailed explanation of the Michagia compliance process, the strict regulations in Europe may limit innovation in the sector.
According to experts, the strict rules of Mica may lead to some crypto money companies to move their operations out of Europe. Natalia łłtka said local companies tend to turn to different markets to avoid these regulations. European comments in the crypto currency market may lose its competitive advantage is increasing.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
