search
Homeweb3.0Circle CEO: MiCA law requires EU stablecoin issuers to reserve 30-60% cash, which is worrying

Circle CEO: MiCA law requires EU stablecoin issuers to reserve 30-60% cash, which is worrying

Jul 18, 2024 am 12:51 AM
StablecoinMainstream coinsKodak CoinLibraBitcoin Cash

Circle CEO:MiCA法要求欧盟稳定币发行商需储备30-60%现金 令人担忧

This site (120bTC.coM): The crypto asset market law "MiCA" proposed by the EU in 2019 has officially entered into force on June 30, making the EU a jurisdiction with tailor-made and comprehensive cryptocurrency regulations The district has taken an important step.

Circle CEO: EU stablecoin reserve regulations are worrying

However, Jeremy Allaire, CEO of stablecoin issuer Circle, which announced earlier this month that its stablecoins USDC and EURC have obtained the MiCA issuance license, recently announced at When interviewed, Brussels pointed out that the provisions of the "MiCA" bill regarding stable currency reserves are worrying.

Jeremy said that "MiCA" requires issuers of stablecoins linked to fiat to hold at least 30% of cash reserves in multiple EU bank accounts, and some even reach 60%. In this regard, Patrick Hansen, Circle’s head of EU strategy and policy, said: Bank deposits will bring credit risks and counterparty risks.

Jeremy also added: It is indeed very difficult for our industry to establish a stable relationship with banks.

Circle stated that they have reported this issue to the relevant authorities. After all, the reason for the previous significant decoupling of USDC was due to the collapse of Silicon Valley Bank. Some experts also said that the EU may propose a solution to this problem when updating the "MiCA" bill in the future and try to respect the principles of decentralized finance.

However, another major reason that Circle did not mention may be related to his interests or losses. We know that the biggest source of profit for stablecoin issuers like Circle or Tether is to use their reserves to buy U.S. bonds, and they can make a lot of money from the interest alone. If it has to be turned into cash and stored in the bank in the future, a lot of potential revenue will be lost.

Why has Tether not been regulated in the EU?

Since Circle announced that it has obtained an issuance license in the EU, its biggest competitor and USDT issuer Tether has not only failed to obtain legal operating qualifications in the EU, but its US dollar stablecoin and euro stablecoin have also been subject to multiple attacks this year. Delisted from all exchanges.

In this regard, Tether CEO Paolo Ardoino hinted in April this year that Tether has been actively participating in the EU's "MiCA" regulatory technical standards discussion, but is still worried that the bill will contain some problematic requirements: These requirements will not only This makes the job of stablecoin issuers extremely complex and would also make EU-licensed stablecoins extremely vulnerable and operationally risky.

Now it seems that placing a large amount of cash in EU banks may also be a major reason for slowing down the progress of Tether.

The above is the detailed content of Circle CEO: MiCA law requires EU stablecoin issuers to reserve 30-60% cash, which is worrying. For more information, please follow other related articles on the PHP Chinese website!

Statement
The content of this article is voluntarily contributed by netizens, and the copyright belongs to the original author. This site does not assume corresponding legal responsibility. If you find any content suspected of plagiarism or infringement, please contact admin@php.cn
Bitcoin Is Growing on the Back of DXY, Which Has Been Showing 99.86Bitcoin Is Growing on the Back of DXY, Which Has Been Showing 99.86Apr 12, 2025 am 11:42 AM

We all watched Bitcoin decline after the massive tariffs imposed by Donald Trump and rebound when he eased them for everyone but China.

A Step-by-Step Guide for Developers Building Multi-Chain Crypto AppsA Step-by-Step Guide for Developers Building Multi-Chain Crypto AppsApr 12, 2025 am 11:40 AM

In today's fast-paced blockchain world, building a crypto application that seamlessly interacts with multiple networks shouldn't take hours or require juggling endless APIs.

Can Cardano (ADA) Really Hit $2 in 2025?Can Cardano (ADA) Really Hit $2 in 2025?Apr 12, 2025 am 11:38 AM

The crypto market is showing positive signs right now. The total market is worth $2.6 trillion, up 0.36%. Bitcoin trades just under $83,000, up 2.27%, while Cardano ADA sits at $0.6268, up 1.79%.

Bitcoin prices fell below a key psychological threshold on Monday, dipping to $79,000Bitcoin prices fell below a key psychological threshold on Monday, dipping to $79,000Apr 12, 2025 am 11:36 AM

Bitcoin prices fell below a key psychological threshold on Monday, dipping to $79,000 in the afternoon. Although recovering some of its earlier losses

FARTCOIN Price Prediction:  Can This Meme Coin's Price Continue Its 250% Surge?FARTCOIN Price Prediction: Can This Meme Coin's Price Continue Its 250% Surge?Apr 12, 2025 am 11:34 AM

FARTCOIN has been one of the standout performers in the meme coin space, with its price soaring nearly 250% over the last 30 days.

Bitcoin (BTC) Price Risks Drop To $74,000 If This HappensBitcoin (BTC) Price Risks Drop To $74,000 If This HappensApr 12, 2025 am 11:32 AM

Crypto analyst Saeed has outlined a bearish case for the Bitcoin price, predicting that it could still drop to as low as $74,000.

Grayscale Adds New Altcoins to Q2 Watchlist, Eyes Future Investment ProductsGrayscale Adds New Altcoins to Q2 Watchlist, Eyes Future Investment ProductsApr 12, 2025 am 11:30 AM

Grayscale Investments has released its updated “Assets Under Consideration” list for Q2 2025, highlighting a new batch of altcoins that may be featured in future crypto investment products.

Coldware (COLD) Remains Committed to Decentralization as the World of Cryptocurrency Regulation Heats UpColdware (COLD) Remains Committed to Decentralization as the World of Cryptocurrency Regulation Heats UpApr 12, 2025 am 11:28 AM

The world of cryptocurrency regulation is heating up, with the SEC actively seeking advice from major players like Uniswap (UNI) and Coinbase.

Hot AI Tools

Undresser.AI Undress

Undresser.AI Undress

AI-powered app for creating realistic nude photos

AI Clothes Remover

AI Clothes Remover

Online AI tool for removing clothes from photos.

Undress AI Tool

Undress AI Tool

Undress images for free

Clothoff.io

Clothoff.io

AI clothes remover

AI Hentai Generator

AI Hentai Generator

Generate AI Hentai for free.

Hot Article

R.E.P.O. Energy Crystals Explained and What They Do (Yellow Crystal)
3 weeks agoBy尊渡假赌尊渡假赌尊渡假赌
R.E.P.O. Best Graphic Settings
3 weeks agoBy尊渡假赌尊渡假赌尊渡假赌
R.E.P.O. How to Fix Audio if You Can't Hear Anyone
3 weeks agoBy尊渡假赌尊渡假赌尊渡假赌
WWE 2K25: How To Unlock Everything In MyRise
4 weeks agoBy尊渡假赌尊渡假赌尊渡假赌

Hot Tools

MinGW - Minimalist GNU for Windows

MinGW - Minimalist GNU for Windows

This project is in the process of being migrated to osdn.net/projects/mingw, you can continue to follow us there. MinGW: A native Windows port of the GNU Compiler Collection (GCC), freely distributable import libraries and header files for building native Windows applications; includes extensions to the MSVC runtime to support C99 functionality. All MinGW software can run on 64-bit Windows platforms.

SAP NetWeaver Server Adapter for Eclipse

SAP NetWeaver Server Adapter for Eclipse

Integrate Eclipse with SAP NetWeaver application server.

Notepad++7.3.1

Notepad++7.3.1

Easy-to-use and free code editor

Dreamweaver Mac version

Dreamweaver Mac version

Visual web development tools

SublimeText3 Linux new version

SublimeText3 Linux new version

SublimeText3 Linux latest version