Starting December 30, the European Union will fully implement the Regulation for the Cryptoasset Market (MiCA Law), leaving one of the most used stablecoins globally out of the game: USDT.
This change opens the doors to USDC and EURC, issued by Circle, consolidating a new balance in the European market of cryptocurrencies.
With a market capitalization close to 163 billion of dollars, USDT, the world’s largest stablecoin issued by Tether, has been a benchmark in cryptoasset trading.
However, compliance with the strict provisions of the MiCA Law has proven impossible for the issuance of this token. The regulations require that all stablecoins listed on centralized exchanges are issued by entities that hold electronic money licenses and that they keep at least two-thirds of their reserves in an independent bank.
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Consequently, exchanges like Binance and OKX already They have removed USDT from their lists, while other operators who have not done so, They have until December 30 to comply with the regulations.
This measure has also led Tether to discontinue support for its euro-linked stablecoin, EURT, on November 27, marking a clear decline in its influence within the European market.
Circle and the rise of USDC and EURC
For its part, Circle, an issuer of USDC and EURC, has gained ground significantly.
The company was the first foreign stablecoin issuer in get the license required by the European Union in July of this year. This has allowed USDC and EURC to not only remain in the market, but also capture a considerable portion of the transaction volume.
As reported by CriptoNoticias, the stablecoins anchored to the euro they have registered volumes exceeding $42 billion throughout 2024a significant increase compared to 2023.
EURC, in particular, has been one of the main beneficiaries, consolidating 91% of the market share along with others such as EURCV from Societe Generale and EURI from Banking Circle.
Binance and its alliance with Circle
The role of Binance, the Bitcoin-criptomonedas/” target=”_blank” rel=”noreferrer noopener”>exchange largest Cryptocurrency exchange in the world, has been key in the consolidation of USDC and EURC in Europe.
In one joint strategy with Circle, Binance has promoted the adoption of these stablecoins as reliable alternatives and regulated. The collaboration also reflects the exchange’s efforts to align with global regulations and reinforce its commitment to transparency and compliance.
This approach not only seeks to boost investor confidence, but also tries to strengthen the ecosystem of digital financial services in the region.
The requirements of the MiCA Law
The MiCA Law establishes a detailed regulatory framework for stablecoins, focusing on ensuring the stability and security of the European market.
In addition to electronic money licenses, stablecoin issuing companies must supervise all transactions intended for payments and ensure transparency in the disclosure of information about its reservations.
These measures seek to minimize the risks associated with cryptocurrencies and foster an environment of regulated innovation. Implementing this framework in phases throughout the year has allowed currencies like USDC and EURC to position themselves as leaders in a market increasingly competitive.
The departure of USDT of the European market marks a milestone in the history of cryptocurrencies. As Tether faces challenges in adapting to regulations, Circle and other regulated broadcasters continue to establish themselves as key players in the development of the sector.
With a market in transformation and the support of a robust regulatory framework, the European Union is positioned as a global benchmark in the regulation of digital assets. This evolution could redefine the future of stablecoins, opening new opportunities for issuers, investors and end users.
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