BCGAME - Free 5BTC Daily Bonus!- Technical standards for stablecoins finalized by 2024.
- Standards cover authorization and stress testing.
- MiCA regulation promotes unification of licenses in the EU.
As the cryptocurrency market expands, the European Union is moving closer to finalizing technical standards for stablecoins, expected by the end of 2024. This move is part of the broader MiCA (Markets in Crypto-Assets) regulation, which aims to establish stricter control over digital financial operations within the bloc.
The European Banking Authority (EBA), in collaboration with the European Securities and Markets Authority (ESMA), recently submitted 15 proposals for technical standards for stablecoins to the European Commission. These standards are crucial to ensuring transparency and security in the market, covering key aspects such as authorisation of operations, stress testing and methods for estimating transaction volumes and values. While the specific standards for stablecoins were implemented in June, the full MiCA regulation will only come into effect in December this year.
The proposed standards are currently under review by the European Commission, which will decide whether any changes are necessary before final approval. After this process, they will still undergo scrutiny by the European Parliament and the European Council. Before officially entering into force, the standards will need to be formally adopted and published in the Official Journal of the European Union.
The EBA’s initial draft was submitted for public comment in July 2023 and followed by the release of a final draft in March 2024, developed in partnership with ESMA. This milestone marks a significant development in the regulation of the nascent stablecoin sector, ensuring that issuers comply with stringent licensing and stress testing requirements.
The full implementation of the MiCA regulations will make it easier for crypto businesses to operate across the 27 EU member states, allowing them to operate under a unified license. This development promises to not only simplify procedures but also bring greater regulatory clarity to the European single market.
