ECB Proposes Shift from Stablecoin Deposit Thresholds to Tiered Liquidity Requirements
The European Central Bank (ECB) and EU central banks are proposing changes to stablecoin regulations, aiming to replace deposit thresholds with tiered liquidity requirements. This move is part of the Markets in Crypto-Assets (MiCA) framework, which seeks to establish a harmonized regulatory approach for cryptocurrencies across the EU.
The current MiCA proposal includes a 10% threshold for staking and lending activities related to stablecoins, but the ECB and EU central banks argue that this may not be sufficient to ensure financial stability. The new tiered liquidity requirements would allow regulators to assess the risks associated with different types of stablecoin deposits.
This development comes as the European Securities and Markets Authority (ESMA) registry reported 80 banking entities registered as regulated MiCA crypto providers, with credit institutions making up a significant share. Meanwhile, other regulatory news includes the RBI partnering with Bitpanda to expand cryptocurrency services across its European network.