European Union markets in crypto-assets regulation-better known as mica-now are in the critical stage of its implementation. Designed to unite crypto regulation in all 27 EU member states, MICA has promised clarity, consumer protection and long-term market stability. But as the implementation begins, the cracks are shown.
In the episode of this week of Byte-sized viewWe have explored MICA’s major provisions today that are forced, especially around Stablecoins, and why some of the largest players in the market refused to comply.
In January 2025, crypto asset service providers (CASP) began obtaining licenses to operate legally within the EU. A transitional or “grandfather” period gives up to existing companies up to 18 months, depending on the member state, to comply. However, as the deadlines approach, companies are forced to act quickly.
Stablecoins at Bay
One of the first and most controversial provisions of MICA involves stablecoins. Under the law, no stablecoin can be offered to EU users unless the giver is authorized to the EU and published a white paper approved by the regulator.
Strict policies around asset reserves, management, conflict of interest and marketing are also part of the package. The givers are prohibited from offering interest in tokens, removing a standard incentive for adoption.
Related: Regulation of Stablecoin next ‘catalyst’ for the crypto industry – Aptos head
Tether’s world-Usdt’s most-used stablecoin (USDT) – already announced It will not look for compliance with MicaThis means the exchanges can be forced to remove it throughout the EU. It has basic implications for liquidity, access to retail retail and regional activity.
Tether’s CEO Paolo Ardoino told Cointelegraph’s Gareth Jenkinson in token 2049:
“The reason is not, eh, fear of regulations, fear of following … The problem I have at UM, with Mica is that (the) license is dangerous when it comes to stablecoins and I believe it is more dangerous for the small medium banking system in Europe.”
Following is key
On the flip side, other companies are leaning. Bitgo, a crypto custody firm, recently Obtained a license aligned with Mica In Germany, the positioning itself to deliver institutional players throughout Europe.
Brett Reeves, head of the Go Network and European Sales in BitGo, told Cointelegraph that the license was not just about compliance, but the long -term strategic alignment with European emerging regulation.
“We found that both Bafin and European regulators were quite straightforward to deal with. Sometimes they had difficult questions, but they were there to make sure our processes were in place and until the beginning.”
We also talked to Erwin Voloder, head of policy with the European Blockchain Association, emphasizing the need for consistent national interpretation and better guides from regulators to prevent fragmentation.
Listen to the full stage of Byte-sized view For complete interview with cointelegraph podcasts Page, Apple podcast o Spotify. And don’t forget to check the entire cointelegraph lineup of other shows!
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