Analyst: MiCA Could Lead Crypto Businesses to Withdraw Operations in European Union

An analyst said that the upcoming crypto asset market framework will impose strict regulatory requirements on stablecoin activities in the European Union, which may adversely affect the European Union's cryptocurrency industry. Starting next Monday, with the partial implementation of MiCA across the European Union, stablecoin activities in the European Union must comply with the new requirements.
Since most stablecoins are pegged to the US dollar, most of them are unlikely to comply with the MiCA in the short term, according to Jasper De Maere, head of research at Outlier Ventures. "Following the implementation of the MiCA, European citizens may face the consequences of restricted trading channels, poor liquidity, and lack of access to more inbound crypto-native investment opportunities," De Maere told The Block. Businesses may withdraw their operations in the European Union due to new regulatory requirements, thus harming innovation and consumer access in the European Union cryptocurrency space. "With the full implementation of the MiCA, expect statements from large exchanges and stablecoin issuers in the coming weeks and months.