Following the European Union’s new regulatory framework, Algorand is playing a leading role in the European crypto market. They recently introduced two MiCAR-compliant stablecoins: $EURD and $USDCa.
The launch of these stablecoins will provide European users with a fully regulated and secure digital asset option. This will be done under the Crypto Asset Market Regulation (MiCAR). This comes as the European Union ramps up efforts to harmonize digital asset rules for stablecoin issuers.
This will ensure a more robust and transparent framework for digital asset transactions between member states.
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Algorand users in Europe can now use MiCAR-compliant stablecoins
Algorand has unveiled the launch of $EURD and $USDCa, which are fully compliant with MiCAR regulations. $USDCa, a compliant version of the popular USDC stablecoin issued by Circle, is similarly compliant with the European regulatory framework.
The $USDCa token has already raised over $114 million in circulation, and demand continues unabated. Users are also looking for compliant alternatives to unregulated tokens.
Dutch company Quantoz publishes $EURD, a fully regulated digital version of the euro. With a 1:1 peg to the euro, there are zero transfer fees, making it a great option for small transactions and everyday use.
Both of these stablecoins are built to meet European citizens’ demand for secure, compliant, and scalable digital assets while navigating the rapidly changing cryptocurrency landscape.
Algorand’s technological advantages and USDC support
One of the most important strengths of the Algorand blockchain is its technological infrastructure, including fast transaction finality, low fees, and extensive exchange support.
One of the few non-EVM (Ethereum Virtual Machine) blockchains that natively supports USDC, $USDCa makes it an attractive option for users seeking a dollar-based stablecoin. Fast transaction speeds and low costs make it suitable for retail and institutional users.
Algorand’s $USDCa is a MiCAR-compliant stablecoin integrated into the Algorand blockchain. As such, it has become more popular compared to the delisted stablecoins that served as an alternative.
As part of Circle and Algorand’s partnership, $USDCa is protected by the highest levels of security and transparency. This is a principle emphasized by the European Union and other European regulators.
In addition to that, exchanges such as Coinbase and Binance list $USDCa on their respective blockchains, increasing both its liquidity and user accessibility for European users.
Unlike other European pegged stablecoins, the USDa-backed $EURD stablecoin is fully regulated by the Dutch Central Bank. This makes $EURD an acceptable option for European users who want to hold a euro-backed digital asset, given the rise of euro-based stablecoins in the region.
MiCAR Regulation and its Impact on the Stablecoin Market
One of the most important regulations for the market is the European Union’s Cryptoassets Market Regulation (MiCAR). This includes strict requirements for stablecoin issuance and sets a new standard for the market.
MiCAR states that European Economic Area (EEA) stablecoins require an e-money license from at least one EU member state.
These strict rules have forced many non-compliant stablecoins to exit the European market. It also led to the delisting of these non-compliant coins from some major exchanges.
