Ripple has moved closer to entering the European Union\'s MiCA crypto regime after securing preliminary approval as a crypto asset service provider in Luxembourg. The approval is conditional and not a full licence. Ripple must demonstrate that its Luxembourg entity can perform each requested service, meet capital or insurance requirements and ensure EU-based staffing and decision-making. Regulators will also scrutinise governance and potential conflicts tied to RLUSD stablecoin issuance and related services.

Circle is expanding its influence in Europe’s stablecoin market with its euro-backed stablecoin EURC, prompting debate over whether the gains reflect product competitiveness or regulatory and policy shifts. DeFi analyst Ignas calls it “Europe’s failure” and says Circle benefited from MiCA, claiming it secured licensing and rapidly lifted market share. He also links the trend to digital euro discussions and argues Circle is pursuing a similar approach in the UK. Critics also question Circle’s response to a Solana-based Drift Protocol hack.