StablR Launches MiCAR-Compliant Euro Stablecoin as EU Regulations Take Effect

  • July 10, 2024
  • 15 Views

TLDR

StablR has been granted an Electronic Money Institution (EMI) License on July 1, 2024
The company is now issuing EURR, a fully MiCAR-compliant euro-denominated stablecoin
This comes as MiCAR’s stablecoin regulations in the European Union come into effect
MiCA requires all stablecoin issuers in the EU to have an EMI license
The new regulations mandate that stablecoins are issued from the EU with reserves held in the jurisdiction
Strict transaction limits will be applied to non-euro-pegged stablecoins

StablR has announced the acquisition of an Electronic Money Institution (EMI) License and the subsequent launch of its MiCAR-compliant euro-denominated stablecoin, EURR.

This move comes at a crucial juncture as the European Union’s Markets in Crypto-Assets Regulation (MiCAR) stablecoin guidelines come into force, marking a new era of regulatory compliance in the crypto industry.

StablR, a company focused on providing efficient, secure, and transparent Euro-denominated stablecoin services, received its EMI License on July 1, 2024.

This license, granted by Maltese regulators, allows StablR to issue EURR, positioning it as one of the first fully compliant euro-backed stablecoins in the post-MiCAR landscape.

The timing of StablR’s announcement is particularly noteworthy as it coincides with the initial implementation of MiCA in July 2024. Under the new regulatory framework, all stablecoin issuers operating in the EU are required to obtain an EMI license.

This regulation imposes strict rules regarding fiat backing, redeemability, transparency, and security for stablecoins.

Gijs op de Weegh, Founder and CEO of StablR, emphasized the significance of this development:

“The last few years have created an environment with a clear demand for transparent, reliable, and trustworthy stablecoin alternatives. This demand is only set to grow further as MiCAR’s stablecoin guidelines come into effect.”

The new regulations introduced by MiCA mandate that all stablecoins must be issued from within the EU, with reserves also held within the jurisdiction.

Strict transaction limits will be applied to non-euro-pegged stablecoins, a move that is expected to dramatically increase the importance of euro-denominated alternatives like EURR.

These regulatory changes have already begun to impact the crypto landscape, with some exchanges delisting unregulated stablecoins and others committing to do so in the coming months. This shift creates a significant opportunity for compliant euro-pegged stablecoins to gain market share.

Op de Weegh highlighted this potential:

“Euro-denominated stablecoins still represent a relatively small part of the crypto market, but that’s undoubtedly set to change in light of these new rules. In the short term, this unlocks a greater opportunity for the EU’s crypto industry to better leverage the enormous potential of digital assets.”

StablR’s EURR aims to address the crucial need for liquidity in the European crypto market.

By ensuring robust liquidity through its extensive network, the company is positioning itself to facilitate broader adoption and growth of the European crypto industry in the face of the changing regulatory landscape.

The company’s technology is designed to enable efficient settlements, fast payouts, and full compliance with required Anti-Money Laundering (AML) and sanctions screenings mandated by the EU.

StablR is also planning to release an API that will allow users to automatically execute trades and settlements, reducing the need for manual intervention.

The introduction of MiCAR-compliant stablecoins like EURR is expected to have far-reaching implications for the European financial system. Op de Weegh expressed optimism about the long-term impact:

“In the long run, it enables the European financial system to operate with the certainty it needs to fully integrate and utilise stablecoins.”

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