Op-Ed: How EU Stablecoin Regulations Could Disrupt The Cryptocurrency Market – CryptoInfoNet

Op-ed

Concerns have been raised by Hugo Coelho and Mike Ringer about MiCA potentially fragmenting the $155 billion stablecoin industry. These warnings come ahead of new regulations set to take effect at the end of June.

Hugo Coelho, the digital asset regulation lead at the Cambridge Centre for Alternative Finance, and Mike Ringer, a partner and co-lead of the Crypto & Digital Assets Group at CMS, shared their views on this matter.

To highlight the impact of the upcoming EU stablecoin regulation, Dante Disparte, the head of strategy at stablecoin issuer Circle, emphasized that MiCA should not be underestimated and compared it to the Y2K phenomenon. Y2K was a glitch associated with the change of the year to 2000 that caused concerns worldwide but ultimately did not result in significant disruptions.

Disparte’s warning about the impending changes due to the Markets in Crypto-Assets regulation in the EU is significant, as stablecoins play crucial roles in crypto asset markets by providing stability, facilitating trading, and supporting decentralized applications.

While the crypto markets have not shown much reaction to MiCA so far, major service providers have started making adjustments in preparation for the new regulations. There is uncertainty surrounding the implications of MiCA, especially the localization requirements for issuers, which could potentially reshape the stablecoin landscape.

As the deadline for compliance with MiCA approaches, the stability and future of the stablecoin industry remain uncertain. The impact of these regulations could result in significant changes for stablecoin issuers and market participants within the EU and beyond.

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• Source: https://cryptoinfonet.com/regulation/op-ed-how-eu-stablecoin-regulations-could-disrupt-the-cryptocurrency-market/