EU\'s Restrictive Stablecoin Rules Take Effect Soon and Issuers Are Running Out of Time

Tether, Circle and other big stablecoin issuers will soon be on a tight leash in the European Union. With new rules that take effect on June 30, not only will they require appropriate authorization to operate in the 27-nation trading bloc, they will also face the tough limits on transaction numbers and values

The European Union will soon enforce new rules that will impact stablecoin issuers like Tether and Circle. Here's what you need to know.

The European Banking Authority (EBA) will publish a final report on how it intends to monitor stablecoin issuers by the end of the month.

The Markets in Crypto Asset (MiCA) legislation will impose strict limits on transaction numbers and values for stablecoin issuers.

Non-EU, euro-denominated stablecoins may be prohibited from being issued or used if they cross a specific threshold.

The caps are intended to prevent stablecoins from replacing the euro, but they may also affect large stablecoin issuers like Tether (USDT) and Circle (USDC).

Blockchain for Europe and the Digital Euro Association attempted to challenge the measures, arguing that they effectively ban large stablecoin issuers.

A consultation document from the EBA suggests that transactions with both parties based outside the EU might be excluded from the caps.

Companies that have had to suspend issuance will need to submit a plan for staying within the limits to be reinstated.

Both Tether and Circle are aiming to obtain the necessary e-money licenses to continue operating legally within the EU.

The above is the detailed content of EU\'s Restrictive Stablecoin Rules Take Effect Soon and Issuers Are Running Out of Time. For more information, please follow other related articles on the PHP Chinese website!