European Banking Authority: Current cryptocurrency regulations are sufficient to address stablecoin risks, no urgent revisions needed
ChainCatcher reported that the European Banking Authority (EBA) stated that the European Union's current cryptocurrency regulation, the Markets in Crypto-Assets Regulation (MiCA), is sufficient to address risks related to stablecoins and does not require urgent amendments.
Although the European Central Bank (ECB) and the European Systemic Risk Board (ESRB) previously warned that stablecoins could pose a threat to financial stability and called for a ban on the "multiple issuance" model, the EBA insists that the existing rules already provide the necessary tools to manage liquidity and redemption risks. An EBA spokesperson said that while they acknowledge the ESRB's concerns about the risk of "large-scale redemption requests," these risks largely depend on the operational methods and business scale of stablecoin issuers. According to the MiCA regulation, stablecoin issuers must maintain adequate reserves, fulfill transparency obligations, and be subject to regulatory oversight.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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