MiCA stablecoin transaction cap is stifling crypto adoption, lawyers say
With a cap of $216 million to be imposed on stablecoins such as USDT and USDC, some say the Cryptography adoption could be "stifled" under MiCA unless it changes.
News
Join us on social networks
Stablecoin use could be 'stifled' by daily transaction caps in European Union legislation on crypto-asset markets (MiCA), with some calling for a review of the framework.
On May 31, MiCA was signed into law, paving the way for the world's first cryptocurrency regulatory guidelines to come into effect.
The legislation has been positively received by many in the crypto industry, but one of the most controversial measures introduced is the €200 million ($219 million) cap on daily transactions for private stablecoins such as Tether (USDT) and Circle's USD Coin (USDC).
EU News
MiCA was officially signed into law today by the President of the European Parliament, Roberta Metsola, and the Swedish Minister for Rural Affairs, Peter Kullgren (Sweden holds the Presidency of the Council of the EU atm).
Next steps:1) Publication in the official gazette of… pic.twitter.com/qY8QPnEZ9A
— Patrick Hansen (@paddi_hansen) May 31, 2023Speaking to Cointelegraph, Chander Agnihotri and Rachel Cropper-Mawer, respectively, chief legal officer and partner at global law firm Clyde and Co, said the use of large stablecoins could “quickly choke” and that regulators should seek to review the daily limits.
Stablecoins aim to mirror the price of fiat currencies – primarily the US dollar – and were introduced as a solution to deal with the price volatility of cryptocurrencies such as Bitcoin (BTC) and Ether (ETH).
However, following the
With a cap of $216 million to be imposed on stablecoins such as USDT and USDC, some say the Cryptography adoption could be "stifled" under MiCA unless it changes.
News
Join us on social networks
Stablecoin use could be 'stifled' by daily transaction caps in European Union legislation on crypto-asset markets (MiCA), with some calling for a review of the framework.
On May 31, MiCA was signed into law, paving the way for the world's first cryptocurrency regulatory guidelines to come into effect.
The legislation has been positively received by many in the crypto industry, but one of the most controversial measures introduced is the €200 million ($219 million) cap on daily transactions for private stablecoins such as Tether (USDT) and Circle's USD Coin (USDC).
EU News
MiCA was officially signed into law today by the President of the European Parliament, Roberta Metsola, and the Swedish Minister for Rural Affairs, Peter Kullgren (Sweden holds the Presidency of the Council of the EU atm).
Next steps:1) Publication in the official gazette of… pic.twitter.com/qY8QPnEZ9A
— Patrick Hansen (@paddi_hansen) May 31, 2023Speaking to Cointelegraph, Chander Agnihotri and Rachel Cropper-Mawer, respectively, chief legal officer and partner at global law firm Clyde and Co, said the use of large stablecoins could “quickly choke” and that regulators should seek to review the daily limits.
Stablecoins aim to mirror the price of fiat currencies – primarily the US dollar – and were introduced as a solution to deal with the price volatility of cryptocurrencies such as Bitcoin (BTC) and Ether (ETH).
However, following the
What's Your Reaction?
