Circle’s USDC will be the stablecoin that will benefit most from the new European regulations: Report – DiarioBitcoin

Due to its regulatory emphasis, USDC could be the stablecoin that best adjusts to the rules that will come into force in Europe in the coming days, thereby absorbing part of the trading volume it currently registers USDT in the region.

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• New considerations for stablecoins in Europe will come into effect in the coming days
• Kaiko Research consider that USDC of Circle will benefit the most among her peers
• Several exchanges are considering suspending operations with USDT of Tether due to the new provisions
• Thus, USDC could address the void it will leave USDT in the region

The introduction of new regulatory provisions in the European Union is generating some uncertainty in relation to the use of stablecoins, precisely due to the rules that will come into force starting next month. However, it may USD Coin (USDC) from Circle be the currency of this type that is best prepared among its peers to adapt to these conditions.

USDC better positioned against new regulations

This is indicated in a report published by the team of Kaiko Researchquoted by the news agency Bloomberg, which details that USDC Due to its regulatory emphasis, it could gain a lot of entry ground in the European territory in the face of the new rules, so they hope that the currency issued by Circle be able to take away market shares from Tether, its main rival in this sector.

In this regard, the analyst Kaiko ResearchAnastasia Melachrinos, assured that the new provisions of the Regulation of Cryptoasset Markets (MiCA) that come into force in the coming days will cause problems for stablecoins “unregulated”group within which it would be USDT of Tether and other assets of this type. By being USDC of Circle a currency that conforms to guidelines in a large number of jurisdictions, will probably be the one that will be best positioned once the new regulatory provisions begin to operate.

In perspective, Kaiko Research shows that the volumes of USDT in European territory they are much higher than those capitalized USDC. For example, in the case of Kraken, Tether moves more than USD $4.3 billion in daily operations through the main exchanges, while USD Coin It stands at over USD $400 million.

Exchanges prepare for changes

The analysts’ reading also takes into account the changes that certain important exchanges in European territory are already announcing, which are considering stopping support for certain stablecoins.

Exchanges like Kraken and OKX are already adjusting to these measures, and have specifically said that they would eliminate trading pairs with USDT in the face of the new regulations. Recently Uphold announced similar measures, so already Tether will not be available for operations.

For its part, Binance He indicated that they would eliminate unregulated stablecoins, and although he did not specifically mention USDT, the movements of his peers suggest that this could be one of the affected ones.

After these movements, the CEO of Tether, Paolo Ardoino, expressed his concerns with certain “problematic requirements” contemplated in the MiCA Lawhighlighting that the company has actively participated in the consultations and technical tables enabled by European regulators:

“These requirements could not only make the job of a stablecoin issuer extremely complex, but could also make EU-licensed stablecoins extremely vulnerable and riskier to operate.” Ardoino argued, claiming that it is still necessary “continue discussing technical implementation standards, precisely to provide clarity to the market on certain provisions.”

For now, Tether It continues to rank as the stablecoin with the highest volume of commercial operations, both in Europe and internationally. It remains to be seen what impact the new rules will have on its operations in the coming days, something that the company is already addressing with regulators.

Article by Angel Di Matteo / DailyBitcoin

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