European Regulator Issues Recommendations for Stablecoin Issuers
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The European Banking Authority (EBA) has just published a set of "guidelines" for stablecoin issuers as part of the MiCA regulatory framework.

The document reportedly calls on firms to prepare to comply with the legislation passed last April 20, which will come into force on June 30, 2024.

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According to the press release:

"The guiding principles are intended to encourage preparatory steps for MiCAR thereby reducing risks of potentially disruptive and sharp business model adjustments at a later stage."

According to the proposals, organizations issuing "stablecoins" must ensure full disclosure of information to customers, present a public business model, establish an effective management system, including risk management, establish a full buy-in mechanism and have sufficient reserves as well as register with the EBA.

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The regulator has said the recommendations for issuers remain voluntary, but investor protection is not guaranteed before the law comes into force.

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