In June 2023, the EU embraced a groundbreaking regulatory framework, MiCA, aiming to oversee crypto-asset markets, with a particular focus on stablecoins—crypto-assets pledging stability against official currencies. MiCA introduces stringent transparency and governance rules, alongside prudential regulations akin to traditional financial institutions. Encompassing all crypto-asset aspects, MiCA anticipates bolstering citizens’ protection, financial stability, innovation, and financial inclusion. EU Commissioner Mairead McGuinness expresses concerns about third-country financial stability. The UK commits to being a ‘crypto hub’ with comprehensive legislation, leaving detailed regulation to national financial authorities. In the US, crypto-assets, if deemed securities, fall under financial markets supervision, prompting debates on potentially stricter regulations. Academics emphasize stablecoin instability in the financial system, advocating for robust transparency and international cooperation. Despite potential adverse effects on crypto-asset market development, a tighter EU regulatory framework demonstrates limited but positive impacts, necessitating third-party policy action for enhanced financial stability.
HomeDIGITAL ASSETS REGULATORYstablecoin euGlobal Perspectives: Regulations on Crypto-Assets in Non-EU Countries and Their Potential Impact...