EU and UAE Crypto Landscapes Altered by Stringent MiCA Regulations
by aria-crypto.com
January 6, 2025 at 10:04
EU and UAE Crypto Landscapes Altered by Stringent MiCA Regulations
The UAE is emerging as a safe haven for crypto businesses challenged by the EU’s new Markets in Crypto-Assets (MiCA) regulation, which is imposing heavy compliance costs, especially on stablecoin issuers.
As of December 30, MiCA mandates that small stablecoin ventures maintain 30% of their reserves in low-risk EU banks, and larger entities like Tether must keep over 60%.
This regulatory burden is predicted to provoke a substantial relocation of crypto firms from the EU to more accommodating regions.
Uldis Teraudkalns, Chief Revenue Officer of Paybis, suggests that these firms are likely to consider places with less stringent regulations, with the UAE being a top destination thanks to its stable and friendly crypto environment.
Agne Linge from WeFi noted the financial strain for smaller stablecoin issuaries in keeping up with MiCA’s reserves requirements in the EU.
Experts point out that while regions like the UK and Switzerland are potential hotspots, the UAE’s clear policies and proactive crypto stance make it particularly attractive for global operations.
Despite being legal for use in decentralized systems, Tether’s primary operations moving outside the EU could minimize regional disruption risks.
With a robust market capitalization, larger companies may withstand compliance costs, but the overall impact could drive market consolidation, reducing competition.
Access to banking services and predictable regulations are key factors influencing relocation decisions to the UAE.
Overall, the MiCA framework is reshaping the geographical distribution of the crypto industry, pushing firms towards crypto-friendly environments.
Read more
>> Turkey Embraces Bitcoin: Garanti BBVA Kripto Partners Bitstamp to Boost Crypto Accessibility
Garanti BBVA Kripto, a subsidiary of Garanti BBVA, one of Turkey's leading banks, has partnered with Luxembourg-based Bitstamp to launch crypto trading services for its Turkish customers. This marks the first l...
a minute ago
>> South Korea's Lotte Group Boosts Tech With Largest Arbitrum Grant for Metaverse Development
Arbitrum, a leading layer-2 network on the Ethereum blockchain, has awarded its largest developer grant to the South Korean conglomerate Lotte Group. This major partnership focuses on integrating blockchain tec...
36 minutes ago
>> CFTC and SEC Transition: What It Means for Bitcoin and Crypto Regulation
As the United States prepares for presidential change, notable shifts are occurring within key financial regulatory bodies, notably the Securities and Exchange Commission (SEC) and the Commodity Futures Trading...
4 hours ago
>> US Crypto Oversight Enhancements Urged by Regulator Amidst Growing Market
The outgoing chair of the Commodity Futures Trading Commission (CFTC), Rostin Behnam, has expressed serious concerns about the oversight of the cryptocurrency market in the United States. In his parting stateme...
>> US Bitcoin Enthusiasm Surges as Coinbase Premium Turns Positive
Coinbase's premium index switched to positive, highlighting a renewed interest in Bitcoin among US investors for the first time since mid-December 2024. This shift is linked to the approval of US-based spot bit...
5 hours ago
>> Ripple IPO Prospects Strengthen as SEC Reevaluates Stance Under New Leadership
Ripple CEO Brad Garlinghouse has expressed optimism for an IPO by 2026, fueled by potential changes in SEC leadership. Legal expert John Deaton predicts that the SEC might drop its appeal against Ripple, influe...
6 hours ago
>> Grayscale Elevates XRP's Role in Crypto, Spotlighting Its Broad Utility and Investment Potential
In a notable move within the cryptocurrency sector, Grayscale has enhanced XRP’s standing by adding it to three specialized lists, underscoring its viability as a store of value, medium of exchange, and instrum...
8 hours ago
>> EU Crypto Market Strengthened by HashKey's New License and Backpack Exchange’s Acquisition
HashKey Group, a leading digital asset service in Asia, has successfully entered the European market by acquiring a Virtual Asset Service Provider (VASP) license from the Central Bank of Ireland. This milestone...
>> Hong Kong's HashKey Gains Ground with New Crypto License in Ireland
Hong Kong-based HashKey Group has expanded its footprint by securing a Virtual Asset Service Provider (VASP) license from the Central Bank of Ireland. This significant development was announced on January 7, 20...
9 hours ago
>> VeChain's Strategic Moves with Walmart and BMW Propel Market Adoption in 2025
VeChain is set to revolutionize its blockchain platform in 2025, leveraging key partnerships with global giants like Walmart and BMW to enhance blockchain adoption. According to VeChain CEO Sunny Lu, the introd...
10 hours ago
All the latest crypto news in one place
Stay informed and up-to-date on the market's latest news with our Terminal's News Aggregator with curated news articles and analysis from over 50 sources, including the crypto's biggest publications.
Launch Terminal
