EU Releases Draft Rules for Multi-Currency Stablecoins under MiCA

EU regulators have taken another step forward in the regulation of stablecoins under the Markets in Crypto Assets (MiCA) framework, with the publication of a batch of draft rules by the European Banking Authority (EBA). These draft Regulatory Technical Standards (RTS) outline requirements for stablecoin issuers when handling complaints related to stablecoins referencing multiple currencies or assets.

The latest publication from the EBA marks the culmination of collaborative efforts between the EBA and the European Securities and Markets Authority (ESMA) to develop regulations under MiCA. This release is part of a series of batches of draft rules that the regulators intend to issue in the context of MiCA.

The RTS recently published by the EBA specifies the requirements, templates, and procedures for managing complaints received by issuers of asset reference tokens (ARTs) as defined by MiCA. Unlike traditional stablecoins, which are typically pegged to the value of a single currency like the euro or U.S. dollar, ARTs, such as Libra (now Diem) proposed by Meta, have the ability to reference multiple currencies or assets, including cryptocurrencies.

While MiCA as a whole is slated to come into effect in December, the rules specifically targeting stablecoins are expected to be enforced this summer. The publication of these draft standards follows a consultation period conducted by the regulators between July and October of last year.

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