MiCA Regulation Shifts Stablecoin Trading Towards Compliant Tokens

The European Union's MiCA regulation has had a significant impact on stablecoin trading in the EEA, leading to delistings and relabeling of non-compliant tokens. Major exchanges like Binance and OKX have restricted or reweighted pairs towards compliant ones like USDC/EURC.

USDC's issuer, Circle, obtained an EU e-money license under MiCA via a French regulator, clearing the path for EU marketing and fiat rails. As a result, USDC has become the preferred stablecoin in EEA markets, with EURC close behind in some corridors.

Trading in the EEA has been affected by the new regulations, with base markets increasingly quoting in USDC or EURC. This shift in liquidity and spreads away from USDT during European hours on some venues has significant implications for traders and desks.