EU cryptocurrency regulation MiCA implementation imminent... Industry confusion

There is confusion in some quarters ahead of the implementation of MiCA, the European Union's (EU) comprehensive virtual asset regulation bill.

According to The Block on the 11th (local time), starting from the 30th, stablecoins issued in EU member countries must meet regulatory requirements. MiCA, introduced to clarify cryptocurrency market regulations, is scheduled to be implemented in stages by December this year. Organizations that do not comply may be fined or banned from operating. Stablecoins issued outside the EU must also comply with MiCA regulations when traded in EU member states, so significant changes are expected in the global cryptocurrency market.



However, the confusion among companies is increasing. On the 3rd, Binance, the world's largest virtual asset exchange, announced that it would restrict access to unauthorized stablecoins starting on the 30th. However, Binance CEO Richard Tung also revealed that there are almost no unauthorized stablecoins.

Cryptocurrency exchanges Kraken and OKX also cannot avoid MiCA. Kraken considered delisting Tether (USDT), but ultimately decided not to delist it. OKX announced in March that it would stop supporting USDT trading pairs in Europe.

Tether CEO Paolo Ardoino evaluated MiCA positively, but argued that some regulations could make the work of stablecoin issuers more difficult and increase risk. Ardoino emphasized that the entire stablecoin reserve must be financed with government bonds to avoid being affected by bank bankruptcy. Oliver Lynch, Global CEO of Bittrex, said, “It has been a year since MiCA was approved, and with little time left until implementation, there are still many uncertainties, raising concerns throughout the industry.”

Reporter Yang Jin-ha

jjing@rni.kr