The original post: /r/cryptocurrency by /u/veegaz on 2024-07-02 15:23:41.
- The stablecoin rules from the European Union’s Markets in Crypto Assets legislation will take effect on June 30.
- The rules ban stablecoins from having over 1 million daily transactions that pay for goods or services settled off- and on-chain.
Tether, Circle and other big stablecoin issuers will soon be on a tight leash in the European Union.
With new rules that take effect on June 30, not only will they require appropriate authorization to operate in the 27-nation trading bloc, they will also face the tough limits on transaction numbers and values set out in the Markets in Crypto Asset (MiCA) legislation.
The regulations mean that some of the biggest stablecoin issuers including Tether, whose dollar-pegged USDT is the world’s largest by market cap, and Circle, responsible for second-ranked USDC, may not be able to operate in the EU, said Robert Kopitsch, the secretary-general of Blockchain for Europe.
“Non-EU, euro-denominated stablecoins – if they are over a certain threshold – then you need to stop issuing and using them, and that creates a problem because 99% of the stablecoins market is in USD,” Kopitsch said on the sidelines of CoinDesk’s Consensus 2024 conference in Austin, Texas last month.