With the growing popularity of stable currencies throughout Europe, the European Commission has intervened to issue new directives which explain how the currencies issued by the same company are processed in different countries, within the law of mica.
The European Commission is preparing to issue new instructions in the days which explain how to face stable currencies under the European Union digital asset law known as Mica, in the midst of increasing pressure at the age of lighter rules on the use of stable currencies in international transactions.
In the essence of these directives, a rule which allows the treatment of stable currencies issued by the same company is issued as a substitute, whether delivered inside or outside the European Union, provided that the export society is allowed to work under the law of mica within the European Union.
The Commission is preparing to make a clarification on stable currencies after the withdrawal of Ethhena revealed organizational gaps
A Reuters report (routers) said that the Commission intended to provide an official clarification in response to the growing state of doubts in the sector, in particular the lack of clarity on the question of whether the currencies emitted by the same company can be used in different countries in a manner that can be replaced.
This happens at a time when the European crack sector still adapts to the Mica law, which entered into force in December 2024. Under this law, the stable currencies classified as EMT are supported by the reserved reserves in European banks, and only license companies can be issued.
The measurement of the commission intervened after the March incident with Ethena – a company exported to stable currencies – where the request of the company was rejected for a license in mica in Germany, which prompted it to leave the European Union market later.
From now on, the Commission should confirm the possibility that companies deal with their currencies as equal in different countries, provided that the Entity on the European Union license participates in this process.
However, not everyone agreed with this approach, because the European Central Bank (ECB) expressed its concern, warning that allowing this type of replacement capacity can expose the European financial system to pressure, in addition to the possibility of using reserves preserved in the European Union to respond to requests for the resumption of foreign exchange owners outside the Union, a scenario that could threaten “to underline the strategic independence of the European Union”.
However, the spokesman for the European Commission said that the risk of such a scenario was very low, saying: “A wave of collective withdrawal from a stable currency with good governance and entirely covered with guarantees will occur.” In addition, the Commission stressed that the owners of stable currencies outside the European Union must submit requests for their money to the branch which exported the currency outside the European Union, not in the European branch.
To avoid incompatibility between reserves and recovery operations, the UNHCR plans to force stable currencies to implement budgetary mechanisms -re -identification which guarantee the identification of the reservations kept in the Federation with the amount of the currencies involved inside.
This step seems to be in response to the request of France Banking Control Authority in April, which asked the Commission if it could be treated the identical currencies issued by separate weapons for the same company – one of which is authorized by the European Union and the other outside – as equal and replaceable.
The European Central Bank is always cautious – as it appears in internal correspondence – the possibility of exhausting the joint financial pressure reserves, emphasizing the need to maintain separate recovery requests between entities inside and outside the Union to avoid organizational gaps.
However, the UNHCR insists that the clear separation between the recovery channels inside and outside the Federation in addition to the precise monitoring of reserves will reduce the risks. As we mentioned in advance, an official declaration of the Commission should be published soon, while regulators seek to achieve a precise balance between encouraging innovation on the market and ensuring that there are solid financial guarantees under the Mica law.
Mica’s law testifies to a troubled start with the study of Europe on the future of stable currencies and its support for the digital euro
Coinciding with the start of the European Union to implement the law regulating digital asset markets (Mica), initial reactions indicate the rules of its stable currencies at a disturbed start; Although the law has clarified companies operating in Europe, its strict conditions – as forced exporters to keep reserves in European banks and to prohibit interest in currencies – slowed down the pace of the adoption of stable currencies.
For example, the most used stable stable currency attachment has chosen not to join this framework, while other companies such as Circle and Crypto.com and some others obtained approval to work under Mica.
Nevertheless, the adoption pace is still very slow. Fabio Panetta, former member of the Board of Directors of the European Central Bank and current sovereign of Italy, said that the Mica law had not made a significant wave of activity on the Italian stable currency market, which is one of the largest markets in the European Union.
Friday, the Italian Bank warned that the growth of cryptographs with the financial stability of traditional financial risks.#Italy #Cypto https://t.co/bzyywt8f14 – cryptonews.com (@cryptonews) May 30, 2025
Instead, users are interested in static and commercial services, not on the currency version. Panetta stressed that, although the Mica law has improves transparency and surveillance, the organization alone will not delete organizational risks and has called for the acceleration of the Euro digital project, which can provide an alternative supported by the central bank and safer than special stable currencies.
At the same time, other large countries such as the United States run to finish the touch of its laws for stable currencies, which means pressure on Europe’s efforts to be a pioneer in the establishment of global standards for digital currencies. In any case, the end of the race in the world of stable currencies is still far away and the impact of the Mica law is still being tried.
The stable currency in the European Union is equivalent to the law on digital asset markets: (Mica) What are the following steps? APPLERDIRST on Arab Cryptonews.