ECB Seeks Stricter Crypto Rules Amid Concerns Over Stablecoin Rewards

The European Central Bank (ECB) has called for stricter regulations on cryptocurrency markets in the EU. The proposal, submitted as part of the review of the MiCA regulation, aims to expand bans on rewards for stablecoins and introduce new restrictions for currency tokens.

One key area of focus is the ban on interest payments for stablecoins, which was already prohibited under MiCA. However, regulators are concerned that some exchanges may be offering indirect rewards through lending, loans, or staking services, effectively bypassing the existing rules.

The ECB and national central banks believe that these mechanisms should also be subject to regulation. They propose extending the ban on interest payments to include such indirect rewards, as well as specific bonuses within loyalty programs.