Cryptocurrency experts predict strict regulation of stablecoins in the EU

The European Union’s Financial Stability Board (FSB) may centralize the issuance of stablecoins, which will affect the operations of leading cryptocurrency platforms. These conclusions were made by experts according to the plans published by the FSB today.

According to representatives of the EU Financial Stability Board, most stablecoin companies do not meet the FSB’s high-level recommendations. There are problems with corporate governance, risk management, and lack of transaction disclosure. After the recent market turmoil and instability of the crypto industry in general (exchange rate volatility, Luna’s collapse, Celsius Network’s bankruptcy), the FSB considers it necessary to develop «comprehensive international rules» for digital assets.

The FSB called on regulatory agencies around the world to expand existing financial regulations and develop new rules for stablecoins. «Many cryptocurrency companies are breaking the law by combining traditional activities such as trading, lending, custody, and brokerage services without licensing ,» the EU Financial Stability Board said.

Regarding the regulation of cryptocurrencies, the EU has reached a joint decision on the formulation of the historic MiCA law, which will pave the way for a common European regulatory policy on digital assets. Today, the EU’s Economic and Monetary Affairs Committee voted in favor of the new package of laws. The vote took place without further discussion of the document’s provisions. Experts emphasized that this indicates that the European Parliament will approve the law by the end of this year.