Patrick Hansen, Circleβs European strategy director, predicted major leaps in the EUβs 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 blocβs 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 βWhat is Going on Behind the Scenes β Post MiCA?β
MiCA: A Game Changer for EU Crypto Regulation
MiCA signifies a shift in the EUβs 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. Circleβs USDC was one of the first stablecoin beneficiaries under this new regime, securing MiCAβs 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, USDCβs 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 AutoritΓ© de ContrΓ΄le Prudentiel et de RΓ©solution, the French banking watchdog.
Growth of Circleβs Euro-Pegged Stablecoin
According to Hansen, the firmβs 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 MiCAβs 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.
Circleβs 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. Circleβs new office is situated in the One World Trade Center, alongside some of Wall Streetβs biggest names.
Stay updated on the latest in the crypto world by exploring more news on Global Crypto News.
#BlockchainNews #Blockchain #AI