Advancements in Cryptocurrency Regulation
In a notable advancement for the cryptocurrency sector, over 50 organizations, encompassing key stablecoin creators and crypto service providers, have attained regulatory certification under the European Union’s Markets in Crypto-Assets (MiCA) framework within the initial six-month timeframe since its implementation. Circle’s executive, Patrick Hansen, disclosed this development on July 7, citing data from the European Securities and Markets Authority (ESMA) that confirmed 53 entities have successfully gained the necessary MiCA licenses.
Impact of MiCA Licenses
These licenses facilitate the ability of these firms to operate seamlessly across all 30 countries within the European Economic Area (EEA) without the need for separate approvals in each nation.
Hansen emphasized that this influx of licenses represents a crucial achievement for the compliance of digital assets within the region, indicating that the MiCA regulations are making significant strides. Among the licensed entities, 14 are authorized to issue stablecoins or electronic money tokens (EMTs) across seven EU nations. Some prominent names on this list include Circle, Crypto.com, Societe Generale, Stablemint, Quantoz, and StablR.
Stablecoins and Market Dynamics
These licensed issuers are responsible for a total of 20 fiat-backed stablecoins, which include 12 pegged to the euro, seven linked to the US dollar, and one tied to the Czech koruna. Notably, Tether, the issuer of the widely used USDT, is conspicuously absent from this list, having failed to meet MiCA’s regulatory standards. Consequently, Tether has faced delisting from various cryptocurrency exchanges based in the EU, such as Coinbase and Crypto.com.
Crypto-Asset Service Providers
Beyond stablecoin issuers, the MiCA framework has also resulted in 39 crypto-asset service providers (CASPs) receiving its licenses. These licenses have been allocated across multiple EU/EEA countries, with Germany leading the issuance with 12, followed by the Netherlands with 11 and Malta with five.
The roster of licensed CASPs includes a diverse mix of financial institutions, fintech firms, and native cryptocurrency companies like BBVA, Robinhood, Coinbase, Kraken, and OKX. However, Binance, the largest exchange by trading volume, is not part of this group. In response to growing regulatory scrutiny, Binance has appointed Gillian Lynch as its new head for Europe and the UK, with the aim of enhancing the company’s compliance efforts in these critical markets.
