Europe’s MiCA framework will enforce new bank reserve requirements for stablecoin issuers, raising concerns about systemic risks and stability.
Europe’s upcoming regulatory framework will introduce significant banking concerns for stablecoin issuers that could threaten the stability of the wider crypto space, according to Paulo Ardoino.
The Markets in Crypto-Assets Regulation (MiCA) is the first comprehensive regulatory framework for the crypto industry and is set to go into full effect on Dec. 30.
Under MiCA, stablecoin issuers will be required to hold at least 60% of reserve assets in European banks.
