VISA adds support for EURC - making EURC the first non-USD stable to be settled over VISANet 🙌

𝐀 𝐟𝐞𝐰 𝐭𝐡𝐨𝐮𝐠𝐡𝐭𝐬 𝐨𝐧 𝐭𝐡𝐞 𝐫𝐞𝐜𝐞𝐧𝐭 𝐄𝐁𝐀 𝐠𝐮𝐢𝐝𝐚𝐧𝐜𝐞 𝐨𝐧 𝐭𝐡𝐞 𝐌𝐢𝐂𝐀<>𝐏𝐒𝐃2 𝐢𝐧𝐭𝐞𝐫𝐩𝐥𝐚𝐲 𝐟𝐨𝐫 𝐬𝐭𝐚𝐛𝐥𝐞𝐜𝐨𝐢𝐧 𝐭𝐫𝐚𝐧𝐬𝐟𝐞𝐫𝐬 — 𝐚𝐧𝐝 𝐰𝐡𝐲 𝐰𝐞 𝐧𝐞𝐞𝐝 𝐭𝐨 𝐚𝐯𝐨𝐢𝐝 𝐚 𝐦𝐚𝐣𝐨𝐫 𝐄𝐔 𝐨𝐰𝐧 𝐠𝐨𝐚𝐥 🇪🇺 The EBA highlights that EMT transfers and custody will - starting from March 2026 onwards - require two licences — a MiCA CASP licence and a PSD2 payment licence — for exactly the same economic activity. 🛑 Why would that be a regulatory own goal? • It breaks MiCA’s “one rulebook” promise. MiCA was created to cover new assets and services not regulated by existing law — not to duplicate requirements. As the EBA says: “Any given financial activity should be regulated by one piece of financial-services law … the applicability of several laws … should be avoided.” • It violates core EU regulatory principles of proportionality, legal clarity, and homogeneity. Dual licensing for the same activity would impose a “disproportionate compliance burden”, create overlaps and enforcement confusion, and make life harder for supervisors and industry alike. • It undermines the EU’s push to cut red tape. Draghi’s Competitiveness Report and the Commission’s simplification agenda call for pruning duplicate regulation. Forcing two licences for one activity pulls in the opposite direction. • It will chill euro stablecoin growth. MiCA-regulated EMTs need distribution. But if CASPs — currently the key drivers for that distribution — are required to get a additional licence, many, particularly startups, will likely scale back their EMT custody and transfer services (potentially increasing transfers with unbacked crypto-assets like BTC). That’s why I strongly agree with the EBA’s view that this needs to be fixed and CASPs “should not be required to be authorised under PSD2/PSD3 as well.” 👉 The upcoming PSD3/PSR negotiations need deliver targeted carve-outs or cross-references, so that EMT custody and most EMT transfers are only covered under MiCA. This may seem like a niche issue — but if left unfixed, it could easily become a major policy own goal by early next year.

Euro yields are 4.9% on @aave Ethereum. That’s double than European fintechs offers today in Europe. Go DeFi.

my feed these last few months 😅 welcome back everyone and happy Friday!

No more friction across chains 👇 Via Circle gateway, users can hold a balance in USDC across multiple chains and use it instantly on any supported chain, without manual movement, without relying on external liquidity, and while retaining full ownership and control.

𝐊𝐞𝐲 𝐋𝐞𝐬𝐬𝐨𝐧𝐬 𝐟𝐫𝐨𝐦 6 𝐌𝐨𝐧𝐭𝐡𝐬 𝐨𝐟 crypto 𝐓𝐫𝐚𝐯𝐞𝐥 𝐑𝐮𝐥𝐞 𝐈𝐦𝐩𝐥𝐞𝐦𝐞𝐧𝐭𝐚𝐭𝐢𝐨𝐧 𝐢𝐧 𝐭𝐡𝐞 𝐄𝐔 𝐯𝐬 𝐔𝐊 🇪🇺 🇬🇧 The EU should reassess its approach to transfers involving third-party self-custody wallets. 🇬🇧 𝐔𝐊 • 100% of CASPs compliant by end of 2023 • 13-month runway, joint public-private guidance, regulator-led testnets • Crucially: risk-based approach to self-custody → ID checks only when necessary and high-risk ➡️ Result: Minimal disruption, full compliance, and preserved user autonomy 🇪🇺 𝐄𝐔 • Only 28.8% of CASPs compliant by mid-2025 • Main issue from my perspective: EBA guidance now requires ID checks for all third-party self-custody transfers > €1k, even when risk is low • This extends what had been agreed upon in the Level 1 law, which required ID checks (e.g., satoshi tests/message signing) only for > €1k transfers to/from self-custody wallets owned by the CASP’s own customer. • Now, CASPs are being pushed to verify the identity of someone who isn’t their customer—operationally challenging if not impossible. 🔒 The outcome? • EU CASPs are now 55% more likely to block self-custody transfers than global peers according to @notabene_id • This fuels de-risking, reduces EU CASP competitiveness, and drives users outside the regulated perimeter • Test it yourself: try sending €1k from your EU exchange to someone else’s wallet—you’ll likely be blocked I highly recommend reading @CatarinaVelos12 breakdown of how the UK and EU have approached the Travel Rule and strongly agree with her (link in comments). The EU should realign supervisory expectations with the risk-based approach originally agreed in the Level 1 text. Otherwise, the Travel Rule could end up undermining its own purpose: increasing transparency without excluding users from the regulated crypto ecosystem.

🇪🇺 Interesting new ESMA report on Maximal Extractable Value (MEV) in crypto markets Some key insights: • ~$1.1B in MEV extracted on Ethereum since the Merge (Sep 2022–Jun 2024), ~0.12% of total DEX volume • MEV spikes massively during market stress — +700% in 3 days during Aug 2024 sell-off • Arbitrage MEV yields more ($20.2M/month) than sandwiching ($16.8M/month), and at lower cost • On Solana, one private mempool ran 1.55M sandwich attacks in 30 days, earning ~$13.4M • MEV-Boost is used in 85–95% of Ethereum blocks — but may increase centralization risks • Regulatory note: MEV isn’t directly addressed under MiCA, but ESMA warns it poses risks to market fairness and transparency. In the future, crypto firms may be required to report suspicious MEV-related transactions under new reporting rules (so-called STORs, or Suspicious Transaction or Order Reports). MEV is no longer niche — it’s reshaping crypto markets and drawing increasing scrutiny from top global regulators. Link to full ESMA report in comments.

#btc finally pushes through its euro ATH. Have a good crypto week everyone 😎

Circle 🤝 @okx We are partnering with OKX to deepen @USDC liquidity and expand access to 60M+ users worldwide. Customers will now be able to easily convert between USD and USDC across OKX products and services. This partnership will provide users with more options, enhance the trading experience, and create new opportunities for individuals and businesses worldwide to seamlessly use USDC. "Demand for USDC continues from businesses and individuals eager to adopt this new form of high-utility and internet-based money.” - @jerallaire Read more:

BBVA is the first major European bank to obtain the MiCA licence