End of stablecoins? Why exchanges are abandoning stablecoins in EU

Markets in Crypto-Assets (MiCA) regulation is about to be implemented, and digital asset exchanges are preparing to comply.

The new law’s requirements aim to protect investors, prevent financial crime, and ensure transparency. 

The European stablecoin regulation will come into force on 30 June, while the European Banking Authority (EBA) and the European Securities Market Authority (ESMA) are consulting on implementing the new rules.

MiCA requires stablecoin issuers to be registered within the EU. However, the issue about how the law will apply to decentralized and foreign issuers remains unsolved. EBA representatives emphasized that there will be no grace period for stablecoins that are already entering the market.