EU MiCA Deadline Sparks Chaos for Unlicensed Crypto Exchanges
The European Union's MiCA (Market in Crypto-Assets) framework has reached its deadline of July 1, marking the end of a transitional period for crypto firms to secure licenses. However, only about 194 companies have obtained a license out of more than 3,000 that were once registered, with supervisors expecting around 75% of older firms to lose their right to serve EU clients.
Tether's (USDT) largest stablecoin, worth approximately $175 billion, has been affected by the change. The company's CEO, Paolo Ardoino, stated that Tether declined to seek authorization due to a requirement to park 60% of token reserves in European banks, which he deemed incompatible with their model.
France has taken a hardline approach, warning unlicensed firms serving EU customers after the cutoff face criminal charges, including up to two years in prison and a €30,000 fine. Meanwhile, Circle's tokens, USDC (USDC) and EURC (EURC), stand to gain from the reshuffle as they are the only top-ten stablecoins with full MiCA clearance.