EU Stablecoin Users Cut Off by Restrictive MiCA Rules

The implementation of the Markets in Crypto Assets (MiCA) provisions has left European users disconnected from major stablecoin providers. According to Circle's Senior Director, EU Strategy & Policy, Patrick Hansen, this is due to the restrictive licensing approach for issuers under MiCA.

MiCA has licensed 35 e-money tokens from 21 issuers, but excluded top issuers like Tether, leaving many EU users unprotected. The framework's stringent provisions have cut off EU users from global stablecoins, limiting market access for major tokens.

Hansen believes that a review of MiCA is necessary to make the framework more competitive and globally aligned. He suggests a more pragmatic approach to open a path for foreign issuers to operate without facing the same rules as their local counterparts.