A total of ten companies have received authorization to issue stablecoins in the European Union under the Markets in Crypto-Assets (MiCA) regulatory framework.
Patrick Hansen, who serves as senior director of EU strategy and policy at Circle, shared that the approved entities include Banking Circle, stablecoin issuer Circle, Crypto.com, Fiat Republic, Membrane Finance, Quantoz Payments, Schuman Financial, Societe Generale, StabIR, and Stable Mint.
According to Hansen, these firms have collectively issued ten euro-backed stablecoins and five pegged to the US dollar.
Notably missing from the list is Tether, the company behind USDt (USDT), the world’s most dominant stablecoin with a market capitalization exceeding $141 billion at the time of writing. This exclusion raises questions about the intersection of regulation and market access.
Is EU Regulation Hindering Innovation?
The European Union, once praised by US lawmakers for its clear approach to crypto regulation, is now facing criticism for potentially stifling innovation with excessive legal constraints.
Economist and market expert Steve Hanke has pointed to the EU’s stringent regulatory environment as a factor contributing to its slower economic growth compared to the United States.
Crypto exchanges have already started removing USDt from their platforms for EU customers in preparation for MiCA’s December 2024 deadline. Other US dollar-linked stablecoins that fail to meet MiCA’s compliance requirements are also being delisted.
Tether has voiced its disappointment over the removals, with company representatives calling the actions premature and unnecessary.
“It’s frustrating to see such rushed decisions based on statements that do little to clarify the reasoning behind them,” a Tether spokesperson told in January 2025.
Natalia Łątka, director of public policy and regulatory affairs at Merkle Science, has previously suggested that MiCA’s strict rules may isolate the European crypto market by discouraging foreign companies from operating in the region.
She further noted that local crypto businesses might consider relocating to avoid the financial burden of MiCA compliance. However, she also pointed out that regulatory uncertainty in the United Kingdom—since its exit from the EU in 2020—makes it an unlikely destination for firms looking to leave the European market.
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