- Market participants urged to manage risks now
- Regulation of stablecoins takes place not only in EWITH
Rules regarding the regulation of stablecoins requireso that issuers have a variety of reserves. European Banking Authority (EBA) Chairman José Manuel Campa urged crypto players to start managing risk now. Even though the MiCA rules will come into effect in 2024.
“MiCA requires stablecoin issuers to hold sufficient reserves. EBA will pay special attention to diversification. Although the law that licenses wallet providers and exchanges is not yet officially written into the statute book, I would encourage market participants to already adjust their operations to ensure sound risk management.” Campa wrote.
He added that stablecoin issuers should mitigate conflicts of interest and reflect ties to custodians and trading platforms.
Recently, a lot of attention has been riveted to stablecoins. Recently there was information that the Bank of England may introduce restrictions on payments in stablecoins. The Bank of England and the Financial Conduct Authority plan to hold consultations on new rules for stablecoins in 2023. And on April 24, a group of Republicans on the House Financial Services Committee declared that stablecoins are not securities.
Also in the United States, a new bill on stablecoins will be considered, which provides for the subordination of issuing companies to the Fed.