The euro stablecoin EURL announced that it will stop issuance! EU's new cryptocurrency regulation MiCA is about to take effect

As the EU Crypto Asset Market Act (MiCA) is about to take effect, stablecoin issuer Lugh announced that it will stop issuing the euro stablecoin EURL, apparently admitting defeat.

Paris-based Lugh posted an announcement on the company’s official website and the Guaranteed redemption of existing EURL before August 30th.”

Before Lugh announced the above news, Binance, the world’s leading cryptocurrency exchange, stated that it would restrict the EU’s territory from being deemed “not exempt” in the short term. "Regulated" stablecoin. Although Binance did not single out major stablecoins such as USDT and USDC, the market is worried that MiCA may restrict the use of these two popular stablecoins by people in Europe.

Looking at Lugh's example alone, the issuance of the euro stablecoin EURL has continued to shrink in recent months, and the circulation has plummeted from US$2.8 million in March to about US$32,000 on Tuesday. Holders representing the majority of EURL may have redeemed this token for funds.

Lugh said people can redeem tokens by going to the issuer’s webpage. The organization also stated: "All EURL has always been and will continue to be guaranteed 1:1 by our reserve account opened at Societe Generale and audited every month by Deloitte (accounting firm)."

In addition, after Binance announced that it would begin to restrict the purchase and sale of "unauthorized" stablecoins in Europe, Tether CEO Paolo Ardoino also expressed doubts that the EU's MiCA would have an impact on stablecoins.

Paolo Ardoino said: "Tether has been actively participating in technical standards consultations with regulatory authorities over the past few months, and remains concerned that MiCA contains several requirements that will cause problems."

These requirements Not only will this greatly complicate the work of stablecoin issuers, it will also make EU-licensed stablecoins extremely vulnerable and pose operational risks. As with any regulatory framework at this scale, further discussion of technical enforcement standards is important to provide regulatory clarity to the market.

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