The European Union (EU) has approved 10 stablecoin issuers under its new Markets in Crypto-Assets (MiCA) regulations, marking a significant milestone in the bloc’s crypto regulatory framework. However, Tether (USDT), the world’s largest stablecoin by market capitalization at $141 billion, was notably excluded from the list, raising concerns about the future of digital assets in the region.
Among the approved entities are Banking Circle, Circle, Crypto.com, Fiat Republic, Membrane Finance, Quantoz Payments, Schuman Financial, Societe Generale, StabIR, and Stable Mint. These firms have launched a mix of euro-pegged and US dollar-pegged stablecoins, but Tether’s absence has prompted crypto platforms to begin delisting USDT for European users.
In addition to the stablecoin issuers, 11 Crypto-Asset Service Providers (CASPs) have been authorized to operate across Germany, the Netherlands, and Malta, offering services in trading, exchange, and custody under the MiCA framework.
Tether’s exclusion has sparked criticism from the company, which voiced disappointment over the decision. The firm called the delistings “hasty and unwarranted,” emphasizing the company’s ongoing commitment to meeting regulatory standards. Despite this setback, Tether is expanding its operations globally, including a proposed acquisition of a 51% stake in a South African energy firm, indicating its focus on ventures beyond digital assets. Tether is also expanding its influence into traditional industries, including sports, with a recent investment in the Italian football club Juventus.
Critics of the MiCA regulations warn that these strict compliance requirements could push foreign crypto firms away from the EU, with some local companies even considering relocation to avoid the burdens of MiCA compliance. Experts suggest that while MiCA aims to enhance clarity and stability, it could inadvertently stifle innovation and reduce competition in the EU’s crypto market, pushing businesses to seek more flexible regulatory environments elsewhere.
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