The European Banking Authority (EBA) has informed stablecoin issuers that they will have to be compliant with the upcoming MiCAR regulation that will be implemented in the European Union (EU) as soon as next year. This was informed by the regulatory agency in a press release a few hours ago.
EBA Encourages Stablecoins to Get Ready for MiCAR in Europe
As per the press release shared by the European Banking Authority, stablecoin issuers and other companies working in the industry will have to be prepared for MiCAR regulations and reduce the risk of potential and disruptive business model adjustments.
The statement reads as follows:
“The statement is intended to encourage timely preparatory actions to MiCAR application, with the objectives to reduce the risks of potentially disruptive and sharp business model adjustments at a later stage, to foster supervisory convergence, and to facilitate the protection of consumers.”
The new Markets in Crypto-assets Regulation is a regime that regulates and supervises cryptocurrency companies and crypto-asset service provision in the European Union. The application will start as soon as next year (from 30 June 2024).
Therefore, companies that are currently operating in the European Union will have to be compliant with all these regulations in order to continue offering services to clients in the continent. A failure to adapt to these regulations could result in companies getting fined or simply being forbidden to offer services and solutions to individuals in the EU.
Stablecoins are some of the companies that are going to be affected. These are digital currencies that have their value pegged to fiat currencies such as the USD or EUR. Their goal is to offer similar benefits to virtual currencies without having to hold the underlying currencies.
