EBA Seeks Tougher MiCA Rules Amid Stablecoin Concerns
The European Banking Authority (EBA) has urged the European Commission to strengthen the Markets in Crypto-Assets Regulation (MiCA). The EBA is concerned about the risks associated with 'stablecoin' schemes with multiple issuers, which it considers significant to very significant. It also wants regulatory modifications for multi-issuer schemes from third countries.
The EBA proposes updating the reserve obligations of issuers and re-examining the minimum volume that must be maintained in deposits. This is aimed at ensuring effective risk management without undermining the effectiveness of regulatory requirements. The European body also suggests including crypto-asset lending in the regulatory framework, particularly when service providers offer access to decentralized lending protocols.
The EBA has asked the Commission to expedite its review and focus on specific issues related to the rapidly evolving crypto sector. It warns that overly restrictive regulation could impose avoidable costs and delays for companies operating in the space.