The Markets in Crypto-Assets Regulation （MiCAR） aims to regulate the European digital asset market, but current regulatory gaps may favor non-European stablecoin issuers, potentially undermining Europe’s banking sector stability.
Points
- MiCAR classifies stablecoins into e-money tokens （EMTs） and asset-referenced tokens （ARTs）.
- Regulatory gaps may disadvantage European issuers compared to non-European counterparts.
- Transaction limits in the Eurozone and capital requirements pose challenges.
- Custody requirements complicate compliance for stablecoins issued from different jurisdictions.
The Markets in Crypto-Assets Regulation （MiCAR）, which began its first phase on June 30, 2024, marks a significant step towards regulating the European digital asset market. However, current regulatory gaps may inadvertently favor non-European stablecoin issuers, such as Tether, and could potentially undermine the stability of Europe’s banking sector.
Regulatory Classifications and Challenges
MiCAR classifies stablecoins into two categories: e-money tokens （EMTs） and asset-referenced tokens （ARTs）. While this regulation introduces stringent requirements for stablecoins, it may disadvantage European issuers compared to their non-European counterparts. A comprehensive and unified regulatory approach is necessary to address these disparities and ensure a balanced playing field.
Fungibility and Transaction Limits
One key issue is the fungibility of stablecoins. Circle’s announcement that stablecoins issued by European entities are fungible with those from jurisdictions with less stringent regulations is problematic. Fungibility implies replaceability by an identical item, but regulatory discrepancies make true fungibility challenging. The enforcement of transaction limits in the Eurozone—capped at 1 million transactions and 200 million euros per day—further complicates matters. Since stablecoins can be stored, traded, and lent globally, tracking which tokens fall under MiCAR’s jurisdiction is difficult.
Regulatory Capital and Custody Requirements
Regulatory capital requirements vary significantly across jurisdictions. In Europe, stablecoins are required to maintain 2% capital, with significant stablecoins needing 3%, the strictest in the market. The challenge of determining when a stablecoin becomes significant adds to the complexity of compliance. Moreover, MiCAR mandates that 60% of fiat and fiat equivalents for significant stablecoins be held at European credit institutions. This requirement becomes complicated with fungible stablecoins issued from different jurisdictions. Without proper safeguards, Europe may face spillover risks from non-European jurisdictions.
The Need for a Unified Regulatory Framework
The failure of major US banks in March 2023, which led to significant de-pegging of stablecoins like USDC, highlights the risks involved. A default by a non-European bank holding assets backing a MiCAR-licensed stablecoin could trigger a de-pegging event, destabilizing Europe’s digital asset ecosystem. MiCAR’s stipulation that all EMT holders have a claim on the issuer complicates enforcement in a borderless blockchain environment. Ensuring fairness within the European digital asset ecosystem requires adopting a unified regulatory framework that addresses these gaps.
解説
- MiCAR aims to regulate stablecoins in Europe but faces challenges due to regulatory gaps and discrepancies.
- Fungibility and transaction limits pose significant hurdles for European stablecoin issuers.
- Regulatory capital and custody requirements add to the complexity of compliance.
- A unified regulatory approach is crucial to ensure a balanced playing field and protect Europe’s banking sector from spillover risks.