The EU's Markets in Crypto Assets (MiCA) regulation for stablecoins has now come into effect, with a stipulation that only regulated stablecoins will be permitted for use within the bloc. The new regulatory framework requires a series of actions for many companies and users wishing to issue or use stablecoins within the EU.

According to YouHodler CEO Ilya Volka, it is now crucial for stablecoin users within the EU to convert non-compliant stablecoins to regulated ones like USDC.

"This conversion ensures maximum stability and will not impact the value of digital assets," Volka told The Block.

Volka added that EU-based investors who hold stablecoins should not move their stablecoins to offshore platforms.

"By staying on a MiCA-compliant platform, users will be protected by the latest …