Stablecoin Issuers Urged To Anticipate MiCA Rules
Even though the new EU regulations don’t go into effect until June of next year, the European Banking Authority (EBA) warned on Wednesday that stablecoin issuers should begin preparing for them.
To safeguard consumers and lessen the cliff-edge for businesses on June 30, the EBA wants to “encourage timely preparatory actions” before to that start date, the regulator stated.
The Paris-based agency’s non-binding guidelines, which include a sample form for businesses to voluntarily notify intentions to national regulators, said that issuers of asset-reference tokens linked to other products like gold and issuers of e-money tokens linked to fiat currency should start adhering to MiCA’s “high standards” of disclosure to potential users as soon as possible.
The announcement was made on the same day that ESMA, the EBA’s counterpart for the securities markets, published its initial set of draft MiCA regulations outlining the information that cryptocurrency service providers seeking a license to operate across the EU will be required to send to the authorities.
(With inputs from Shikha Singh)
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