The European Banking Authority (EBA) revealed three session papers Wednesday on the proposed liquidity necessities of the reserve property held by stablecoin issuers.
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Quick Information
- The proposed pointers intention to make sure that the quantity of reserve property held by an issuer can meet the market worth of the stablecoin and permit any redemption requests always.
- The monetary watchdog stated that the rules will act as a liquidity stress take a look at for stablecoin issuers, which can spotlight situations of inadequate liquidity.
- Primarily based on the outcomes of the liquidity stress testing, the EBA could resolve to extend the liquidity necessities of a selected stablecoin issuer, the regulatory company stated in a press launch.
- The EBA is searching for suggestions on its session papers till Feb. 8, 2024. It’s going to additionally conduct a digital public listening to on Jan. 17, 2024.
- The session papers are a part of the third batch of the Markets in Crypto-Property (MiCA) coverage merchandise. MiCA is the bloc’s regulatory framework for the crypto market.
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