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With the Markets in Crypto Assets (MiCA) rules set to fully launch in 2024, European Banking Authority has urged stablecoin issuers to comply with the upcoming regulatory framework. EU watchdogs remain dedicated to regulating the cryptocurrency market as the region establishes itself as a crypto hub.
Swarm co-founder Philipp Pieper stated that MiCA adoption launched a new era for cryptocurrency, applauding Europe for being a pioneer (invezz.com news). Swarm is an Ethereum-based DeFi platform.
EAB urges stablecoin issuers to comply with set rules
In a recent significant development, European Union Banking (EAB) regulator has advised stablecoin issuers to start adhering to consumer protection & risk management rules. The watchdog unveiled the initial list of rules as the markets await the MiCA in 2024.
The European Parliament approved MiCA in April, introducing the world’s first all-inclusive cryptocurrency law (read more). The framework highlighted stablecoin (crypto tied to fixed assets such as fiat) issuance.
EAB expects increasing stablecoin issuers in the upcoming months
With the MiCA law into effect, European Banking Authority officials expect surged stablecoin issuance within the coming months. The EAB framework incorporates provisions like handling complaints and permanent redemption rights.
Further, the regulator believes its guiding principles will help companies ensure good governance and risk management before next year’s mandatory rules. EBA wants to encourage timely MiCA application as early preparation will reduce risks of possibly sharp & disruptive business model adjustments.
The post European Banking Authority officials encourage early MiCA adoption appeared first on Invezz.
