ECB Calls for Stricter Oversight of Crypto Service Providers

The European Central Bank (ECB) has called for stronger oversight of cryptocurrency service providers and stablecoin issuers in response to the EU's review of its crypto-asset framework.

In a recent submission, the ECB reiterated its support for stricter supervision of these entities, including transferring authorization powers to the European Securities and Markets Authority (ESMA).

The central bank also proposed changes to stablecoin reserve requirements, suggesting that minimum deposit requirements be replaced with liquidity requirements based on the maturity of reserve assets.

Additionally, the ECB called for clearer rules on third-country multi-issuer stablecoin schemes and stronger crisis-management provisions.