A Regulated Path to Growth – MiCA regulation would not sign the end of stablecoins. On the contrary, it would even constitute a condition sine qua non to the development of the sector, according to the statements of this executive within Circle, the issuer of the USDC.
MiCA or the benefits of regulatory clarity
The rules will be stricter for crypto companies operating within the European Union, but they will have the merit of being clear. One of the leaders of Circle thus made these optimistic remarks during his speech, on October 25, at the Blockchain Summit for EU which was held in Brussels.
From this perspective, the finalization of the MiCA regulations, which must regulate the use of cryptocurrencies in the European Union, should thus be considered as an opportunity to promote the development of the sector in the region.
The European Parliament will have to decide on this bill in the coming weeks. If the texts are adopted, MiCA should then come into force in 2024.
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Circle’s Euro Coin on the way to growth?
Beyond the strict or relatively flexible nature of this regulation, Circle therefore insists rather on the regulatory clarity that it will bring to the industry, and which draws “now a regulated pathway for stablecoins in Europe », according to Patrick Hansen, head of the company’s European policy.
This executive within Circle recalled the fact that the euro is the second largest currency in the world. And as MiCA now specifies the rules of the game for crypto companies, it would then appear on the list of growing incentives to use a stablecoin backed by the euro.
In this respect, the issuer of the USD Coin (USDC) has every reason to welcome this gradual disappearance of regulatory vagueness within the European Union, because on paper, clear and relatively precise legal provisions should fuel the growth of its euro-pegged stablecoin, the Euro Coin (EUROC).
Circle launched this stablecoin as an ERC-20 token on Ethereum (ETH) last June. According to data from CoinMarketCap, the market capitalization of EUROC exceeds 77,500,000 euros at the time of writing this article.
The MiCA regulation would thus be a necessary fuel for the development of cryptocurrencies in Europe, and in particular for crypto companies established in France, and not a brake on innovation. In any case, the players in the sector will have to comply. The most pragmatic will thus prefer to see the positive side of this text of law, rather than lamenting, in order to be able to move forward.
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