EU Crypto Market to Surge by 2025 with MiCA Regulation

Patrick Hansen, Circle’s European strategy director, predicted major leaps in the EU’s crypto and stablecoin market by late 2025.

At the European Blockchain Convention in Barcelona, Hansen shared expectations of advancements in the crypto market structure across the European Union. The bloc’s Markets in Crypto-Assets Regulation, known as MiCA, is set to be the primary catalyst for this growth. Hansen emphasized this during a panel titled “What is Going on Behind the Scenes – Post MiCA?”

MiCA: A Game Changer for EU Crypto Regulation

MiCA signifies a shift in the EU’s crypto regulatory strategy, providing comprehensive guidelines for governments, institutions, and investors regarding digital assets. The regulation outlines requirements for crypto exchanges and thresholds for stablecoin reserves. Circle’s USDC was one of the first stablecoin beneficiaries under this new regime, securing MiCA’s inaugural stablecoin license.

Impact of MiCA Compliance

Hansen disclosed that MiCA compliance and eventual regulatory approval involved a unique process compared to other regions. For instance, USDC’s issuer liaised with regulators for up to 24 months before obtaining approval. Circle also applied for its Electronic Money Institution license in France, which was accepted by the Autorité de Contrôle Prudentiel et de Résolution, the French banking watchdog.

Growth of Circle’s Euro-Pegged Stablecoin

According to Hansen, the firm’s euro-pegged stablecoin, EURC, has seen a significant increase of 60-70% since July when approval was issued. The token now boasts over 67 million euros in market cap. Hansen foresees continued growth for EURC and other stablecoins in the EU, driven by MiCA’s rules.

We believe that in the European Union, for our euro stablecoin, but for euro stablecoins overall, we can expect at least significant growth in the next 12 months.

Circle’s Strategic Moves

As the USDC operator solidified its European foothold, CEO Jeremy Allaire advanced plans for an initial public offering in the U.S. The digital payment provider relocated its global headquarters to the heart of New York City as part of a roadmap to go public. Circle’s new office is situated in the One World Trade Center, alongside some of Wall Street’s biggest names.

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