The head of research at Outlier Ventures said that the pegging of most stablecoins to the US dollar makes it very unlikely that issuers will be able to achieve compliance with all the requirements of the European cryptocurrency legislation (MiCA).

Jasper De Maere, in an interview with The Block, warned residents of the European Union that in the next few weeks or months there will be announcements from major exchanges and stablecoin issuers that they will no longer support dollar stablecoins in the EU.

Once new pan-European regulations come into force, some companies may decide to cease operations in EU countries. This will limit investors’ ability to access the digital asset market.

New legislation agreed by EU governments (MiCA) requires that only stablecoins that meet certain requirements be freely traded in Europe. To gain access to the market, issuers must license their EMI activities, maintain a liquid reserve on a 1:1 basis, isolated from the rest of the company’s assets, and store the reserve in third-party custody.

Earlier, MakerDAO co-founder Rune Christensen said that the law on regulating cryptocurrencies in the European Union would prevent the full development of DeFi projects in the region and could throw European crypto companies into the “stone age.”