MiCA Regulation Restricts Access to Major Stablecoins in EU

The European Union's Markets in Crypto-Assets Regulation (MiCA) has officially taken effect, limiting access to several major stablecoins for EU-based users. According to Circle's head of EU policy, Patrick Hansen, only a handful of stablecoins currently meet MiCA's stringent compliance requirements.

Hansen noted that USDG, USDC, and EURC are the only compliant stablecoins, while popular tokens like Tether's USDT remain unavailable or restricted in the EU. This has practical consequences for retail and institutional investors who rely on USDT as a primary on-ramp to crypto trading.

The restriction may force users to switch to alternative stablecoins, potentially affecting trading volumes and market dynamics. Hansen emphasized that this could also push some users toward unregulated or offshore platforms, which contradicts MiCA's goal of protecting consumers.