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France Challenges MiCA as OKX Backs $400M Vietnam Crypto Pilot
French regulators push for stricter stablecoin oversight to protect monetary sovereignty, while Vietnam launches a $400M institutional crypto sandbox pilot.
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The Regulatory Pushback in Europe
The European Union’s Markets in Crypto-Assets (MiCA) regulation, long heralded as the gold standard for global digital asset oversight, is facing renewed scrutiny from French policymakers. Denis Beau, First Deputy Governor of the Bank of France, has signaled a clear intent to push for more stringent requirements concerning stablecoins pegged to non-euro currencies.
Beau’s argument centers on the concept of monetary sovereignty. He expressed concerns that the current MiCA framework may be insufficient to insulate the Eurozone from the systemic risks posed by stablecoins denominated in foreign currencies, such as the U.S. dollar. For French regulators, the proliferation of non-euro stablecoins represents a potential encroachment on the European Central Bank’s (ECB) ability to maintain control over monetary policy. By advocating for tighter restrictions, France is positioning itself as a leader in the push for a more protectionist approach to digital finance, potentially setting the stage for a friction point between national regulators and the harmonized EU-wide framework.
Market Implications for Stablecoin Issuers
For traders and institutional players, this development suggests that the era of 'regulatory certainty' under MiCA might be more fluid than initially anticipated. If France succeeds in lobbying for stricter mandates, issuers of non-euro stablecoins could face higher capital reserve requirements, more rigorous stress testing, and possible caps on transaction volumes. Investors should monitor how these potential amendments impact the liquidity of major dollar-pegged assets within the EU, as any forced deleveraging or migration of these assets could lead to increased volatility in crypto-to-fiat trading pairs.