TechFlow news, November 13 — According to Cryptopolitan, the European Banking Authority (EBA) stated that the EU's current cryptocurrency regulations, the Markets in Crypto-Assets Regulation (MiCA), are sufficiently capable of addressing risks associated with stablecoins and do not require urgent amendments.
Although the European Central Bank (ECB) and the European Systemic Risk Board (ESRB) previously warned that stablecoins could pose threats to financial stability and called for a ban on the "multiple issuance" model, the EBA maintains that existing rules already provide the necessary tools to manage liquidity and redemption risks.
An EBA spokesperson said that while it shares ESRB's concerns regarding the risk of "large-scale redemption requests," these risks largely depend on how stablecoin issuers operate and the scale of their business. Under MiCA, stablecoin issuers must maintain adequate reserves, fulfill transparency obligations, and be subject to regulatory oversight.
