Context:
The SIDA framework, which covers the regulation of digital assets in the European Union, has entered into December 2024 and now applies to all EU countries, including France.
The Commission questioned ECB’s concerns for the SECA rules and claimed that it would amplify concerns about stablecoins to support the controversial digital euro. According to her, Europe is already lagging behind Web3 and other restrictions would probably only make it worse.
ECB thinks that mica is not sufficiently strict
The law of the mica came into effect only for four months, but the ECB has already had serious doubts about it. According to a recent report, the European Central Bank is concerned about the relative competitiveness of the Stablecoins supported by the US dollar that could take over the European market.
As the commentator expressed, Mikko Ohmamaa will be good reasons to take care of it:
“The EU had the advantage of the first arrival with regulation and finally spoiled it. No European stable is competitive at the international level due to hostility towards its own affairs, integrated into the lobby of banks and other traditional financial institutions,” he said on social networks.
Since the EU has been dealing with the subject of the regulation of the stablecoins, its approach deeply influenced Region of the market. In fact, after entering the elevation, Tether completely left the European market.
More recently, Ethena Labs also left Europe after the refusal of its application for the approval of the mica. However, these companies have not encountered such problems in the United States.
It is interesting to note that the ECB concerns do not concern the possible excessive severity of the mica that would reduce innovation in the region. As has been said PoliticoRather, it concerns that existing regulations are not sufficiently strict.
The ECB recognized the openly declared goal of President Trump to use Stablecoins to support the dollar domination and fear that US assets will immerse European markets. Therefore, he wishes directly to the retaliation of its regulatory framework. However, the European Commission responded to hostility to changes proposed by ECB for mica.
The Commission would say that some of these concerns were “absurd” and suggest that the ECB continued to promote the already controversial digital euros.
In parallel, most EU institutions are satisfied with existing stablecoins regulations. In addition, if the ECB gets its proposed reforms from the mica, will these changes really have an impact?
Finally, the Krypto market responded with a relatively shocking ambivalence to its recent decrease in rates. Thus, Europe is probably delayed in the global Web3 economy, and more restrictions are unlikely to the solution of dreams.
Morality of the story: Too stacked crypto ends with a leak from the eye of the net.
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