- Market participants urged to manage risk now
- Stablecoin regulation is not just in the EU
Stablecoin regulations require issuers to have a variety of reserves.
Jose Manuel Campa, chairman of the European Banking Authority, urged cryptocurrency players to start managing risks now.
Although MiCA rules, will take effect in 2024.
“MiCA requires stablcoin issuers to have sufficient reserves. EBA will focus on diversification.
Although the law that licenses wallet providers and exchanges has not yet been formally written into the body of law, I would urge market participants to already adjust their operations to ensure sound risk management.”
He added that stablemoment issuers should mitigate conflicts of interest and reflect links to custodians and trading platforms.
Stablecoins have been receiving a lot of attention recently. Recently it was reported that the Bank of England may impose restrictions on payments in stabelcoins.
Bank of England and Financial Services Authority plan to consult on new rules for stable coins in 2023.
And on April 24, a group of Republicans on the House Financial Services Committee said that stablcoins are not securities.
The U.S. will also consider a new stablcoin bill that would subject issuing companies to the Fed.