MiCAR comes into effect – this is how the market reacts to EU regulations

Parts III and IV of the EU's MiCAR crypto regulation took effect, bringing oversight of stablecoin issuers under Germany's BaFin, with other parts applying from December 30, 2024. The Financial Times reports that MiCAR may hinder innovation, and that Paxos cancelled plans for its interest-paying dollar-linked token "lift" in the EU, citing MiCAR. Tether has not applied for a license, while Circle obtained one in France and is the first global stablecoin issuer to comply, according to Circle's EU representative Patrick Hansen.