Circle says that with the upcoming MiCA’s entry into force, this year will be “transformative” for stablecoins

Representatives of the European Banking Authority said that from the end of December this year, all crypto platforms and their intermediaries operating in the European Union will have to comply with the so-called Travel Guidelines.

Participants in the digital currency market will be required to report on remittances and crypto transactions. In addition, it is planned to conduct checks for compliance with KYC standards for all players in cryptocurrency transactions.

Companies providing such services must provide information about the participants in the relevant transactions if their volume exceeds 1,000 euros (about $1,100). We are talking about providing personal information about the sender of funds and their recipient. Companies will be required to ensure that this information is retained for 5 years.

Service providers who fail to comply face fines of up to 5 million euros (about $5.4 million). The regulator can also suspend the activities of such companies and even revoke the license.

Circle executives recently indicated that 2024 “will be a transformative year” for stablecoins with the impending entry into force of EU crypto market regulations (MiCA).

Experts believe that MiCA is a unique opportunity to create a European legal market for digital assets. And companies that fail to prepare for the new requirements soon will likely shut down or lose significant market share in Europe.

“Stablecoin offerings, both local and global, will either comply or ultimately vanish from the EU market in the short to mid term, as evidenced by recent announcements from exchanges like Binance, Bitstamp, Kraken, OKX and others that are either delisting or phasing out non-compliant tokens,” experts said.

Do you agree with them?