EU Banking Authority Urges Stablecoin Issuers to Comply With Risk Management Principles Ahead of New Regulations

The European Union's banking watchdog, the European Banking Authority (EBA), has called on stablecoin issuers to voluntarily comply with guiding principles on risk management and consumer protection. This comes ahead of mandatory rules that will be implemented in a year's time under the Markets in Crypto Assets Regulation (MiCA). The EBA expects an increase in stablecoin issuance and wants firms to use its guiding principles to reduce risks and ensure a smooth transition to the new regulations.