The introduction of the EU's Mica legislation triggers positive reactions in the crypto industry, but large stable coins could suffocate

The introduction of the EU's Mica legislation triggers positive reactions in the crypto industry, but large stable coins could suffocate

The European Union recently issued the legislation of markets for crypto-assets (mica) that have come across positive reactions in the crypto industry. However, there is a controversial measure within legislation, namely the daily transactional border of 200 million euros for private stable coins such as Tether and USD Coin.

Some legal experts believe that this upper limit could "suffocate" quickly and that the regulatory authorities should rethink these restrictions. The upper limit means that the issuers of stablecoins, if they exceed the daily transaction quantity, have to stop their further activities and work with the regulatory authorities to bring the transactions back to the upper limit.

There is the possibility that the current rules could dampen the use of stable coins, which in turn could lead to the digital currencies of the central banks (CBDCs) in importance. However, an expert admits that a relatively unrestricted use of stable coins in other countries could have negative effects on the cryptoma market in the EU.

Despite some criticisms, Mica generally received positive feedback, especially with regard to improved market access for start-ups and smaller companies, which should promote innovation and competition.

Overall, it remains to be seen how the new legislation will affect the cryptom market and the use of stable coins. It remains to be hoped that the regulatory authorities consider the concerns of the experts and, if necessary, make adjustments to take into account both the regulatory goals and the development of the crypto industry.