EBA Official: Stablecoin Issuer Standards Likely to Be Published by Year-End

EBA Official: Stablecoin Issuer Standards Likely to Be Published by Year-End

The European Banking Authority (EBA) is expected to publish technical standards for stablecoin issuers under the EU's Markets in Crypto Assets (MiCA) regulation by the end of the year. These standards will establish criteria that issuers like Tether and Circle must adhere to in order to operate within the EU. The draft standards are currently under review by the European Commission. Once approved, they will be examined by the European Parliament and the Council of the EU before being published in the EU Official Journal. The implementation of these standards is a significant step towards regulating the rapidly growing stablecoin market. Stablecoins are cryptocurrencies pegged to a stable asset, such as the US dollar or the euro, and are used as a medium of exchange and store of value. The EBA's standards are designed to ensure that stablecoin issuers meet certain requirements, including: Adequate capitalization Robust risk management practices * Transparency and disclosure These standards aim to protect consumers and ensure the stability of the financial system. The publication of the final standards is expected to provide clarity and certainty for stablecoin issuers and the crypto industry as a whole.