MiCA reshapes EU crypto market, leaving only 11 stablecoins
MiCA reshapes EU crypto; only 11 issuers approved.
The European Union’s sweeping Markets in Crypto-Assets (MiCA) regulation, which took full effect across all 27 EU member states 100 days ago, is already reshaping the crypto ecosystem.
As of now, only 11 stablecoin issuers have successfully secured approval to operate under the stringent new framework, Сryptopolitan informs.
MiCA aims to unify crypto regulation in the bloc, mandating that all exchanges, stablecoin issuers, and crypto platforms comply with uniform rules, including licensing requirements and white paper notifications. The impact is already being felt across the market.
Germany leads as stablecoin approval lags
According to Patrick Hansen, Senior Director of EU Strategy at Circle, the 11 authorized stablecoin issuers span six countries. These approvals include licenses to issue e-money tokens (EMTs) – mostly single fiat-backed stablecoins. To date, 16 EMTs have been issued: 10 euro-denominated and 6 in U.S. dollars.
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While Germany leads the pack with six authorized CASPs, Malta follows closely with five. Meanwhile, 15 companies from six countries have been licensed to provide crypto-related services like trading, custody, and exchange execution. Notably, some prominent Dutch firms like MoonPay and Hidden Road were absent from the interim register.
Advertising clampdown and industry impact
In a related development, Google is aligning with the MiCA framework. From April 23 onward, crypto platforms aiming to advertise in the EU must hold a MiCA license or be a registered CASP. Failing to comply will result in ad removal after a one-week grace period.
Despite these hurdles, the overall crypto market remains strong. The market cap recently topped $2.7 trillion, buoyed by Bitcoin’s 8% weekly rally. However, the stablecoin race remains dominated by Tether, with a $145 billion cap, trailed by Circle’s $60 billion.
Conclusion
As MiCA sets a new precedent for global crypto regulation, the early compliance data underscores the framework’s rigor. With only a handful of stablecoin issuers making the cut and major players still navigating the process, the coming months will determine the broader viability of MiCA’s model and its global influence on crypto oversight.
Read also: AWS outage disrupts major crypto exchanges including Binance, KuCoin, MEXC.
