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The European Union\u2019s Markets in Crypto-Assets regulation \u2014 better known as MiCA \u2014 is now in its critical implementation phase. Designed to unify crypto regulation across all 27 EU member states, MiCA promises clarity, consumer protection and long-term market stability. But as implementation begins, cracks are already showing.<\/p>\n
In this week\u2019s episode of Byte-Sized Insight<\/em>, we explore the key provisions of MiCA now in force, particularly around stablecoins, and why some of the largest players in the market are refusing to comply.<\/p>\n As of January 2025, crypto asset service providers (CASPs) began acquiring licenses to operate legally within the EU. A transitional or \u201cgrandfathering\u201d period allows existing firms up to 18 months, depending on the member state, to comply. Still, with deadlines approaching, firms are being forced to act quickly.<\/p>\n One of MiCA\u2019s earliest and most controversial provisions involves stablecoins. Under the law, no stablecoin can be offered to EU users unless the issuer is authorized in the EU and publishes a regulator-approved white paper.<\/p>\n Strict rules around asset reserves, governance, conflict of interest and marketing are also part of the package. Issuers are even banned from offering interest on tokens, removing a common incentive for adoption.<\/p>\n Related: <\/strong><\/em>Stablecoin regulation next \u2018catalyst\u2019 for crypto industry \u2014 Aptos head<\/strong><\/em><\/a><\/p>\n The world\u2019s most-used stablecoin \u2014 Tether\u2019s USDt (USDT<\/a>) \u2014 has already announced it won\u2019t seek MiCA compliance<\/a>, meaning exchanges may soon be forced to delist it across the EU. This has major implications for liquidity, retail access and DeFi activity in the region.<\/p>\n Tether CEO Paolo Ardoino told Cointelegraph\u2019s Gareth Jenkinson at Token 2049:<\/p>\n \u201cThe reason is not, uh, fear of regulations, fear of compliance\u2026 The problem that I had with um, with MiCA is that [the] license is very dangerous when it comes to stablecoins and I believe that it’s even more dangerous for the small medium banking system in Europe.\u201d<\/p><\/blockquote>\n On the flip side, other firms are leaning in. BitGo, a crypto custody firm, recently secured a MiCA-aligned license<\/a> in Germany, positioning itself to serve institutional players across Europe.\u00a0<\/p>\n Brett Reeves, head of Go Network and European Sales at BitGo, told Cointelegraph the license is not just about compliance, but long-term strategic alignment with Europe\u2019s evolving regulatory landscape.<\/p>\n \u201cWe found that both BaFin and the European regulators have been relatively straightforward to deal with. Sometimes they have difficult questions, but they’re there to make sure that our processes are in place and up to scratch.\u201d<\/p><\/blockquote>\n We also spoke with Erwin Voloder, head of policy at the European Blockchain Association, who emphasized the need for consistent national-level interpretation and better guidance from regulators to prevent fragmentation.<\/p>\n Listen to the full episode of Byte-Sized Insight<\/em> for the complete interview on Cointelegraph\u2019s Podcasts page<\/a>, Apple Podcasts<\/a> or Spotify<\/a>. And don\u2019t forget to check out Cointelegraph\u2019s full lineup of other shows!\u00a0<\/p>\nStablecoins at bay<\/strong><\/h2>\n
Compliance is key<\/strong><\/h2>\n