EBA Calls for Tougher Crypto Regulations Amid Rising Risks
The European Banking Authority (EBA) has called on the European Commission to strengthen the Markets in Crypto-Assets Regulation (MiCA). The EBA wants to tighten the rules for 'stablecoin' schemes with multiple issuers, which it considers to be high-risk. These stablecoins are digital assets pegged to a specific currency or asset.
The EBA also recommends updating the regulatory framework to include lending with crypto-assets, including activities linked to decentralized finance (DeFi). This is because such lending poses significant risks for users, according to the EBA.
Furthermore, the EBA suggests revising the reserve obligations of issuers, particularly the minimum deposit requirements. The authority aims to ensure that risk management remains effective without imposing unnecessary costs and delays on companies in the rapidly evolving crypto sector.