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EUROe Helps CASPs & CEXes Stay MiCAR-Compliant

Posted on:7 November 2023 at 10:00

In a rapidly evolving digital economy, adherence to regulatory frameworks isn’t just a compliance checkpoint—it’s a strategic advantage. The Markets in Crypto-Assets Regulation (MiCAR) represents a significant step toward harmonising the regulatory landscape for crypto-assets within the EU. As we move towards a post-MiCAR world, centralised exchanges are at a pivotal juncture to make informed choices about the stablecoins they offer.

EUROe emerges as a compliant and robust stablecoin, fully aligned with MiCAR’s stringent standards. This alignment is not merely a commitment to regulatory adherence but a testament to EUROe’s dedication to financial stability and user protection.

Regulatory Compliance

EUROe is designed with the MiCAR framework at its core, ensuring full compatibility with new and existing regulations. Unlike other stablecoins, particularly USD-pegged ones, EUROe is uniquely positioned to meet and exceed the compliance requirements set forth by the EU.

MiCAR sets heavy requirements for stablecoin issuers in the EU. Particularly, as per Article 58(3), non-EU member state currencies are subject to the even more stringent requirements of Article 23. Subsequently, when the “quarterly average number and average aggregate value of transactions per day associated to its [the stablecoin referencing a non-EU currency] uses as a means of exchange within a single currency area is higher than 1 million transactions and EUR 200 000 000, respectively”, the issuer shall stop issuing the token.

As a practical example, based on data for the Ethereum blockchain from Token Terminal, as of 6 November 2023, the second largest stablecoin by market capitalisation on Ethereum had processed approximately 4.6 billion euros per day in transfer volume, exceeding the MiCAR figure by a factor of 23. Its quarterly average number of transactions stood at 5.1 million (derived from the past 30 days of data), again, exceeding the cap (by a factor of 5). This practical example, which highly underestimates the scale of transactions and volume as it uses only Ethereum data, clearly illustrates that any well-adopted USD-stablecoin will be unavailable for offer in the EU post-2024, presuming that this logical interpretation of MiCAR remains valid and applicable.

Filling the Void

Post-2024, centralised exchanges will face restrictions on offering certain non-EU stablecoins. EUROe offers a seamless transition with its EUR-pegged multichain architecture, ensuring that exchanges and their users can continue operations without interruption. Furthermore, Membrane Finance, the issuer of EUROe, partners with the leading industry participants to ensure healthy secondary markets, seamless institutional custody solutions, quick and effortless minting and redemption, and robust compliance.

By choosing EUROe, exchanges mitigate the regulatory risk associated with non-compliant stablecoins. The foresight to integrate EUROe today is a proactive measure safeguarding against future enforcement actions.

EUROe: A Strategic Choice for Centralised Exchanges

EUROe’s compliance with MiCAR isn’t just about checking a box—it’s about providing a stablecoin that’s built for longevity and trust in the digital asset space. The choice for exchanges now is clear: adapt to the regulatory landscape by adopting EUROe, a stablecoin that’s ahead of the curve.

In the dynamic world of cryptocurrency, regulation is the north star guiding the path to mass adoption. EUROe is not just MiCAR-compatible; it’s a stablecoin conceived for a future where regulation and innovation go hand in hand. For centralised exchanges, partnering with EUROe isn’t just a strategic move—it’s a commitment to stability, compliance, and the future of finance.

If you are a representative at a centralised exchange, broker, or any other centralised institution marketing or offering services in the EU or to Europeans, we invite you to contact us regarding initiating the process for issuing your written notice to offer EUROe. Furthermore, we are happy to discuss our collaboration with some of the largest key crypto market participants to ensure deep, liquid, and healthy secondary markets. Membrane Finance is also developing a product offering to serve your fiat liquidity needs in the EU.