EU Banking Agency urges stablecoin issuers to anticipate MiCA rules.

Even though the new EU regulations don’t go into effect until June of next year, the European Banking Authority (EBA) warned on Wednesday that stablecoin issuers should begin preparing for them.

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The EU’s Markets in Crypto Assets (MiCA) law establishes oversight and reserve standards for cryptocurrencies linked to the value of other assets. The corresponding measures are set to go into effect six months before other regulations on licensing for crypto wallet providers and exchanges.

To safeguard consumers and lessen the cliff-edge for businesses on June 30, the EBA wants to “encourage timely preparatory actions” before to that start date, the regulator stated.

According to non-binding guidelines released by the Paris-based agency, issuers of e-money tokens linked to fiat currency and of asset-reference tokens linked to other products like gold should start upholding MiCA’s “high standards” of disclosure to potential users as soon as possible. The guidelines also offer a template form for businesses to voluntarily notify intentions to national regulators.

The announcement was made on the same day that ESMA, the EBA’s counterpart for the securities markets, released its initial set of draft MiCA regulations outlining the information that cryptocurrency service providers seeking a license to operate across the bloc will be required to present to the authorities.