- Standard Chartered has announced a new Luxembourg entity to serve as its “EU regulatory entry point” for crypto and digital asset custody services following MiCA implementation.
- The bank’s expansion follows its UAE launch and aims to leverage Luxembourg’s favourable regulatory environment to meet growing EU client demand.
- JP Morgan analysts predict that despite higher costs, MiCA regulations could encourage European financial institutions to develop Euro-denominated stablecoins, potentially attracting institutional investors.
British multinational bank Standard Chartered is expanding its venture into crypto with the establishment of a “regulatory entry point to the EU market to serve growing client demand”.
Related: From Crypto Professor to Crypto Prosecutor: Gensler’s Final Swipe at The Industry
According to a January 9 press release, the London-headquartered bank will enable access to Bitcoin and other cryptocurrencies through its new Luxembourg operations.
Standard Chartered today announced the opening of its new entity in Luxembourg, to act as its European Union (EU) regulatory entry point for the provision of crypto and digital asset custody services to EU clients, following implementation of the Markets in Crypto Assets (MiCA) Regulation.
Standard CharteredThe launch comes following the unveiling of similar services in the UAE. According to the statement, the new venture aims to meet the growing EU client demand, leveraging Luxembourg’s favourable regulatory and financial environment.
MiCA to Increase EU-based Stablecoins, Says JP Morgan
The Markets in Crypto-Assets Act is the European Union’s unified regulatory framework that governs all crypto assets and service providers operating within the EU, regardless of where they’re based.
This comprehensive legislation creates a single licensing structure across all 27 EU countries, replacing the previous patchwork of regulations and aiming to protect investors while preventing market manipulation and money laundering through clear compliance standards.
It has been criticised by some as too stringent, but also applauded by others as providing some regulatory clarity, which countries like the United States are lacking.
According to a report in The Block, JP Morgan has recently come out to state that despite higher costs, MiCA could lead to a rise of stablecoins denominated in Euro.
Related: Bhutan SAR Reveals Plans to Hold BTC, ETH and BNB in Strategic Reserve
The number of Euro-based stablecoins is still very low compared to USD-based stablecoins, with USDT and USDC being by far the most used.
The report stated that “MiCA could encourage European banks and financial institutions to adopt Euro stablecoins”, to satisfy local customer demands, and have a longer-term positive effect on the industry.
The long-term impact on the cryptocurrency market could be positive […] this could contribute to attracting institutional investors and encouraging the adoption of Euro stablecoins.
JP MorganCredit: Source link
