Categories: Global Adoption

European Banking Authority Takes Next Step in Finalizing Stablecoin Policy

As mandated by the recently-implemented Markets in Crypto-Assets Regulation (MiCA), the European Union has taken another step toward establishing regulations around stablecoins.

The European Banking Authority (EBA) on Wednesday released a final draft of regulatory technical standards in partnership with the European Securities and Markets Authority (ESMA), which oversees markets in the EU. The standards establish protocols for stablecoin issuers when addressing complaints.

The standards ask issuers of asset-referenced tokens — known as stablecoins — to publish how they handle complaints and to have a standardized process for customers and users to submit them. The EBA first released draft guidance for public comment in July 2023. Based on these comments, “the EBA decided to make a small number of targeted amendments,” the banking regulator said in a statement Wednesday.

Changes include new provisions relating to data protection and updates to complaint forms to include a section for complainants to list legal representatives. Wednesday’s final draft also comes months after the EBA released draft guidelines relating to how stablecoin and other cryptocy issuers should structure their recovery plans.

Terron Gold

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