Mica provides stablecoins with critical regulatory supervision

StableCoins has become an integral part of the digital asset ecosystem, reaching 15.6 thorns in the annual transaction volume in 2024. (119% and 200% Visa and MasterCard, toward At Ark Invest) and now imperceptibly bridge traditional finance with blockade-based transactions. However, concerns about transparency, security and regulatory surveillance has long surrounded the industry.

In order to address these issues, the European Union has introduced Markets in the regulation of crypto-means (Mica), establishing clear guidelines for issuing stablecoin. This regulatory framework is designed to protect consumers, provide financial stability and create level reproduction for digital (AKU cripto) assets. This means that companies and institutions can work with reliable, transparent and harmonized staters of stablecoin.

Mica, which entered into force 2024. years, is a landmark in shaping the future of digital property in Europe. It provides a clear framework for stateless issuers, a mandate of strict financial and operational requirements. Publishers of Stablecoin are needed to meet the number of important regulatory requirements, starting, first and most important, seeking regulatory approval, with the publishers of electronic cash tokens must have a permit for an electronic cash institution or be a financial institution.

Then they must have full reserves of one-day reserves, which means that each token must fully support high quality, high liquid financial reserves. Detention of assets must be independent, so reserves must be held separately from the issuer’s own property, ensuring complete bolder. Publishers must provide regular reports and transparency to regulators and passing independent financial audits. Finally, there cannot be interest or access to MICA compliance, ensuring that they are used as a means of payment, not an investment vehicle.

The role of regulation

The regulation is really important because these measures are critical to building trust in Stablecoin market, ensuring that only regulated and responsible publishers remain operational in Europe. But it is not only in line; It is about building the foundation of trust, stability and long-term sustainability. Many digital assets worked in an unregulated environment, which led to insecurity, lack of transparency and potential risks for companies and investors. However, from Mića in place, unregulated stablecoins will no longer be allowed to act on the European market.

Companies should choose to use stablecoins regreled issuers, because it allows them to measure them, such as legal security, which can only be reliable to transactions, knowing that their stable service provider is regulated by financial and operational requirements. As they are fully supported and revised, Stablecoins provide stability on the market that minimizes risk and provides predictable, stable digital assets for transactions. Since conformity with European financial regulations, he reassures institutions, regulators and corporate clients, institutional trust has become a standard.

It is also very important to consider the jurisdiction that the publisher of StableCoin is based on. For example, the Netherlands is one of the few AAA banking countries in Europe, is recognized for its financial strength, stability and regulatory strictness. Using Stablecoine issued by EMIS, which maintains banking relations with level 1 is crucial to ensure that euros that support stablechoins in circulation are held in accounts with reliable financial institutions. The financial institutions of Tier 1 have large balance sheets, ensuring that stewable reserve is well diverse and not subject to high concentration risk.

There are many benefits of banking in AAA jurisdiction, especially, funds are stored in highly liquid, top financial institutions, leading to a stronger reserve management. It provides greater institutional trust, and, of course, companies prefer stablecones that are supported by regulated, well-capitalized banks. Then the fact that a powerful bank framework provides soleal groups to include FIAT and mitigates De-Pegling risks, providing scalability and liquidity. Stablecoin publishers can take this step further by maintaining reserves in an independent structured and managed fundation, providing complete protection of assets in a unlikely event of the financial difficulty of the issuer.

The future of stablecoins in Europe is clear. Only regulated, transparent and fully supported digital means is survived.

Arnoud Star Busmann

Arnoud Star Busmann Whether General Manager of Kuantoz Payment, a leading Netherlands under the Dutch central bank and one of the few publishers fully supported stablecoins, which are designed to be mića in accordance with more than 25 years of experience as an entrepreneur, director and advisor and geography. He was recently president and managed director at Minehub Technologies Inc., a company that publicly stated in Canada. Before that, he was with the Bank, where he held several roles to wholesale banking business, and with ANZ banking group in New Zealand and Asia. It was headed for the Netherlands and has a master’s degree in computer science from Utrecht University.