How do the compliance requirements for stablecoins under the EU’s MiCA regulation and Switzerland’s FINMA guidelines differ in terms of legal classification, regulatory obligations, and market impact?

Abstract

This dissertation examines the regulatory approaches of Switzerland's legal framework for the cryptocurrencies and the European Union’s “Markets in Crypto- Assets” (MiCA) Regulation, with the specific focus headed on stablecoins. As a very important component of the cryptocurrency ecosystem, stablecoins aim to offer price stability and play a crucial role, creating a bridge between the digital economy (Crypto Markets) and the traditional financial system (Banking System). Although, during the recent years, their influence has increased continuously, presenting significant regulatory challenges with the necessity of having new frameworks to ensure consumer protection and financial stability. Through a comparative analysis of Switzerland’s frameworks and the new Regulation introduced in the EU (MiCA), this study explores the key provisions related to stablecoins and highlights the areas of convergence and divergences between two of the most important jurisdictions in Europe. The research delves into the regulatory objectives and mechanisms used to enforce the strategies employed by both frameworks, assessing their effectiveness in addressing the risk connected with the stablecoins. On the other hand, this dissertation examines the compliance of the most popular stablecoins such as Tether (USDT) and Tether Gold (XAUt), with MiCA and Swiss regulations, providing insights of the practical implications of these regulatory frameworks for stablecoin issuers and the market. This study highlights the complexities of cross-jurisdictional regulation in the fast- developing digital assets space. Through identification of potential areas of regulatory convergence and improvement, this research offers valuable recommendations for policy makers, regulators and industry stakeholders as well as contributes to the ongoing discourse on the regulation of cryptocurrencies, providing a well understanding of how stablecoins are regulated under different legal regimes.