The United Arab Emirates (UAE) is poised to become a key destination for crypto and stablecoin ventures seeking refuge from the European Union’s (EU) newly implemented Markets in Crypto-Assets (MiCA) regulation.

The regulatory framework, which took full effect on December 30, is creating significant challenges for crypto firms within the 27-member bloc, prompting many to consider relocating, according to industry experts.

The MiCA regulation introduces a pan-European licensing and supervisory regime for crypto-assets, exchanges, and service providers.

MiCA Mandates Stablecoin Issuers to Hold Large Portion of Reserve Rule in EU Banks

Among its stringent requirements, small stablecoin issuers must hold 30% of their reserves in low-risk EU-based commercial banks, while major players like Tether face a mandate to maintain 60% or more in similar institutions.

While aimed at ensuring market stability, these rules are seen as increasing operational costs, potentially undermining the financial viability of many firms.

Uldis Teraudkalns, Chief Revenue Officer at cryptocurrency exchange Paybis, predicts a significant exodus of smaller and even some larger crypto firms from the EU.

“The new regulations will drive companies to look for jurisdictions with more favorable regulatory frameworks,” Teraudkalns told Arabian Business.

“The UAE is emerging as a preferred destination due to its crypto-friendly policies and stable regulatory environment.”

In addition to the UAE, near-EU jurisdictions such as the UK and Switzerland are also expected to attract crypto firms, depending on the evolution of their regulatory landscapes.

Experts noted that the UAE’s proactive positioning as a crypto hub, combined with its clarity on policies, makes it a compelling choice for companies looking to maintain global operations.

MiCA’s impact on stablecoin issuers has been particularly notable. The regulation’s requirement for substantial capital reserves could prove unsustainable for smaller players in the crypto sector.

MiCA Regulations . . .

Full effect end of December 2024.

Meaning most blockchain & crypto companies will have to be audited, KYC & Know Your Business in the European Union…

Seems like Ripple will have no problem

with RLUSD…

FYI:
Tether is on its way out of centralized… pic.twitter.com/RzFAUPtKio

— 𝙈𝙚𝙩𝙖𝙈𝙖𝙣 𝙓 (@MetaMan_X) December 20, 2024

Agne Linge, head of growth at decentralized finance platform WeFi, highlighted the potential strain on these firms.

“For smaller stablecoin issuers, maintaining 30% reserves in EU banks is financially burdensome,” Linge said.

Larger players like Tether, with a robust market capitalization of $138 billion, may be better positioned but still face significant compliance costs.

Linge also pointed out that Tether’s liquidity primarily originates outside the EU, minimizing its exposure to regional disruptions.

The stablecoin remains legal within the EU for use on peer-to-peer platforms, decentralized exchanges, and custodial wallets.

MiCA to Spark Regional and Global Migration in the Crypto Sector

The MiCA framework is expected to prompt both regional and international migration within the crypto sector.

While some companies may shift operations entirely to crypto-friendly jurisdictions like the UAE, others may explore more progressive regions within the EU itself.

Teraudkalns suggests that this migration could lead to market consolidation, reducing competition and raising barriers to entry.

Access to banking services and regulatory predictability will play pivotal roles in firms’ relocation decisions.

“Companies will consider how to serve their customer base from the UAE while ensuring access to necessary banking and payment methods,” Teraudkalns explained.

Last week, crypto payments platform MoonPay received approval under the MiCA regulation.

The post UAE to Attract Crypto Ventures Amid EU’s Stringent MiCA Regulation: Experts appeared first on Cryptonews.

Bitcoin (BTC) is capturing the attention of market participants as significant whale activity signals bullish expectations tied to President-elect Donald Trump’s inauguration on January 20. On Saturday, Amberdata revealed that a trader on Deribit spent over $6 million to secure $100,000 strike call options set to expire on March 28.

According to reports cited by the blockchain analytics platform Amberdata, the surge in whale activity reflects broader market sentiment, with traders also heavily favoring $120,000 strike call options. 

BTC Options Trade Worth Over > $6M 💰

A trader spent over $6,000,000 on March 28, 2025, 100k calls!

This trade anticipates that new highs for Bitcoin will be broken just a few months after Trump officially takes office.

Source: AD Derivatives @genesisvol… pic.twitter.com/OPL6b7bxNp

— Amberdata (@Amberdataio) January 3, 2025

The $120,000 option currently holds the highest notional open interest on Deribit, totaling $1.52 billion. Amberdata noted on X (formerly Twitter) that Bitcoin is anticipated to surpass its all-time high within months following Trump’s official swearing-in.

Call options echo positive market sentiment

Call options grant buyers the right, but not the obligation, to purchase an asset at a predetermined price before a specific expiration date. According to market analysts, their popularity often signals a bullish market outlook. 

“The inauguration and its aftermath present a unique window for policy announcements that could serve as bullish catalysts for Bitcoin,” said Greg Magadini, Director of Derivatives at Amberdata, in a recent newsletter. However, he cautioned that delays or shifts in anticipated policy frameworks could inject short-term volatility into the market.

Bitcoin’s recent price action adds weight to these expectations. According to TradingView data, Bitcoin climbed above $99,500 on Monday, reflecting an 8% recovery from its December 30 low of $91,384.

According to data from LookOnChain, the largest crypto’s recent price recovery is accompanied by notable accumulation activity from whales and institutions. Two newly created wallets collectively withdrew 261 BTC, valued at approximately $25.9 million, from Binance earlier today.

Bitcoin reclaims $99K!

Whales and institutions are accumulating $BTC.

2 fresh wallets withdrew 261 $BTC($25.9M) from #Binance today.

Kulr Technology(@KULRTech) received 213.4 $BTC($21.09M) from #CoinbasePrime 2 hours ago and currently holds 430.6 $BTC($42.71M).… pic.twitter.com/g5S0jDuXSw

— Lookonchain (@lookonchain) January 6, 2025

Meanwhile, Kulr Technology, a US-based energy management company, received a transfer of 213.4 BTC (worth $21.09 million) from Coinbase Prime a few hours ago, bringing its total Bitcoin holdings to 430.6 BTC, valued at $42.71 million.

Market analysis highlights diverging signals

The excitement surrounding Bitcoin call options coincides with other optimistic signals in the cryptocurrency market. Deribit reported that perpetual swaps, a key trading instrument, have shown increasing stability, exhibiting a pattern akin to pre-downturn patterns, suggesting renewed confidence among traders.

“Options markets tell a mixed story, with short-tenor volatility skewed slightly toward out-of-the-money puts, while longer-tenor options display a stronger bullish tilt,” Deribit noted in a January 2 report. 

December’s year-end expiration of a significant proportion of options open interest (OI) failed to create the dramatic price swings some had predicted, indicating more measured market behavior.

The regulated cryptocurrency index provider CF Benchmarks has echoed the optimism, pointing to potential regulatory changes under the Trump administration. In an annual report shared with media houses, the firm highlighted how a restructured US Securities and Exchange Commission (SEC) could encourage innovation while reducing enforcement risks. 

These changes may enhance investor confidence, but CF Benchmarks also warned that delays in policy implementation could temporarily dampen market sentiment.

Adding to this perspective, Bybit, in collaboration with Block Scholes, released its latest crypto derivatives report on January 3. The derivatives research analyzed open interest trends for Bitcoin and Ethereum during the critical year-end options expiration period. 

It revealed that while perpetual swaps open interest has not returned to early December 2024 levels, the market has remained stable.

“This stability suggests that traders did not heavily rely on perpetual contracts to hedge the delta of expiring options, contributing to the muted volatility during the year-end,” the release stated. Trading volumes also dipped during the winter holiday season, leading to a significant drop in realized volatility, the lowest seen in December.

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