European Union seeks to place special emphasis on stablecoin regulation

In recent weeks, the European Commission has been publishing details of the new digital financial package for member countries. As reported The Crypto Legal, said Commission will seek to establish a supervisory body for significant digital currencies. Also, this week has paid special attention to companies that issue stablecoins[1], through the establishment of a regulatory framework that seeks to mitigate the potential risks that users are exposed to.

As reported by the portal Criptonoticias, this proposal "seeks to adapt current financial regulations to facilitate digital innovation and reduce financial fragmentation." The regulation would aim for companies that issue this type of cryptocurrency to be subject to stricter capital requirements, liquidity management and interoperability. Therefore, they must provide information on governance requirements, investment rules, technical information, among others.

Finally, it should be noted that all projects in the cryptocurrency sector must request authorization to be able to provide services in the European territory. Likewise, all firms that offer the aforementioned services must have physical offices in the European Union. Said measure seeks to unify and integrate the European market, whose compliance will be in the hands of the European Banking Authority (EBA) and the regulators of each nation (NCA).

[1] Crypto assets anchored to a currency such as the dollar or the euro.

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Sergio Puicon
Ninth cycle law student at the Pontificia Universidad Católica del Perú. With interest in Commercial Law, Fintech and Capital Markets. I believe in the power of information and technology as a tool to enhance it.


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