TechFlow reports, citing DL News, that Jeremy Allaire, co-founder and CEO of Circle, said the EU's MiCA regulations introduce credit and counterparty risk, making it difficult for industry firms to maintain consistent banking relationships. MiCA requires issuers of fiat-pegged stablecoins to hold 30% of their reserves in cash across multiple EU bank accounts, with the requirement rising to 60% for significant e-money tokens.
Patrick Hansen, Circle’s Head of EU Strategy and Policy, noted that these bank deposits introduce credit and counterparty risk. The MiCA reserve requirements are expected to undergo a mid-term review next year, followed by a comprehensive review within two to three years. Circle hopes that the EU’s crypto asset market regulations will change in the future.
Previous report, Circle obtained an electronic money institution license from France’s banking regulator on July 1, complying with MiCA requirements.
