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EU crypto regulation ushers in stablecoin regime

As the Mica regulation brings stricter rules for stablecoins, the industry is cautious about their impact
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EU crypto regulation ushers in stablecoin regimeImage: Ingenious Buddy/Getty Images

Strict new rules related to stablecoins came into effect in the EU this week with the implementation of the first portions of the bloc’s Markets in Crypto-Assets regulation.

While the clarity provided by the new regime has been broadly welcomed, the rules place significant restrictions on the use of stablecoins denominated in dollars, which account for the vast majority of global trading volumes.

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Liz Lumley is deputy editor at The Banker. She is a global specialist commentator on global financial technology or “fintech”. She has spent 30 years working in the financial technology space, most recently as director at VC Innovations and architect of the Fintech Talents Festival, managing director at Startupbootcamp FinTech London and an editor at financial services and technology newswire, Finextra. She was named Journalist of the Year for Technology and Digital Finance at State Street’s UK Press Awards for 2022.
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