EU re-proposes to restrict trade in non-euro-backed stablecoins

If approved, such transactions will be subject to a limit of 200 million EUR per day

29.09.2022 - 10:40

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What’s new? A daily limit on transactions involving non-euro-backed stablecoins has been re-included in the European Union’s Markets in Crypto Assets (MiCA) law. According to The Block, these rules limit the daily trading volume of stablecoins denominated in other currencies to 200 million EUR. Notably, this proposal was put back on the document a few weeks after it was abandoned.

The Block’s material

What else is known about the initiative? The European Parliament’s Committee on Economic and Monetary Affairs is expected to vote on the legislation in October or November this year.

According to Dimitris Psarrakis, head of EU affairs of XReg Consulting, the French delegation of the European Council enlisted the support of Germany, Italy, and the Netherlands to impose restrictions. In his opinion, such rules will have a negative impact on the European market and will complicate the regulation of cryptocurrencies.

According to the May statement of the European Commission, regulators were offered to be empowered to require issuers to stop issuing new stablecoins if their volume exceeds 200 million EUR and 1 million transactions per day. In this, the resumption of issuance was allowed in the case when the figures fall below this threshold.

It was reported in September that the EU would equate non-fungible tokens with securities, according to the MiCA law that hit the web. The document states that NFTs have almost no unique properties or utility, and are therefore subject to the same regulatory controls as cryptocurrencies.

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