Lawyers Raise Concerns Over Daily Transaction Limits Imposed by MiCA on Stablecoins
On May 31 the world witnessed the implementation of the Markets in Crypto-Assets (MiCA) law which aimed to provide regulatory guidance for cryptocurrencies. This development was widely welcomed by the cryptocurrency industry. However one particular measure within the law has sparked controversy and that is the €200 million daily transaction limit imposed on major stablecoins such as Tether’s USDT and Circle’s USDC.
Lawyers Advocate for Reconsideration of Daily Limits
Legal experts Chander Agnihotri and Rachel Mawer-Cropper from global law firm Clyde and Co have voiced their concerns over the daily transaction limits that is imposed by MiCA . They argue that these limits could hinder cryptocurrency adoption and suggest that regulators should reconsider this aspect of the framework.
The attorneys emphasize how quickly the law could restrict massive stablecoin transactions which might limit their use. According to Mawer-Cropper the €200 million cap does not imply an outright prohibition. Rather it advises issuers to stop any further transactions and work with authorities to resolve any issues . She does however foresee that the usage of significant stablecoins may quickly be constrained which would force policymakers to reconsider the matter.
Additionally Mawer-Cropper expresses her belief that central bank digital currencies (CBDCs) could evolve more quickly if the current rules restrict the use of stablecoins.
Mixed Responses from Industry Players
Chander Agnihotri claims that most people have been accepting of MiCA. the Chief Technology Officer of Tether (USDT) Paolo Ardoino did not however elaborate much on the USDT trading in Europe . However he lauded MiCA as a commendable endeavor and referred to the law as the most thorough the sector has ever seen .
The daily transaction cap may have an impact on important stablecoins like USDT according to Ardoino. However he makes the vague suggestion that these restrictions have definite functions.
The implementation of the MiCA law brought regulatory guidance to the world of cryptocurrencies . While the law received positive feedback from the industry concerns have been raised about the €200 million daily transaction limit imposed on major stablecoins . Legal experts argue that these limits could impede cryptocurrency adoption and urge regulators to reconsider them.