European Banking Authority (EBA) said on Wednesday that issuers of stablecoins should start preparing for new EU regulations, despite them only taking effect next June.
The Markets in Crypto Assets (MiCA) regulation within the union establishes governance and reserve requirements for crypto assets that are bound to the value of other assets. Notably, certain requirements of this regulation, including those pertaining to licensing requirements for crypto wallet providers and exchanges, will come into effect six months earlier than other rules.
The EBA wants to protect the customers and ensure readiness before the deadline for the companies by encouraging timely preparatory actions ahead of the date.
According to non-binding guidelines published by a Paris-based agency, issuers of digital currencies that are tied to fiat currency and asset-reference tokens linked to products like gold are urged to promptly adopt MiCA's "high standards" of disclosure to potential users.
The guidelines offer a template form that companies can voluntarily use to inform national regulators about their intentions. It is recommended that issuers act sooner rather than later in adhering to these guidelines.
Coinciding with the announcement, the European Securities and Markets Authority (ESMA), which is responsible for securities markets, released its initial set of draft regulations for MiCA. These regulations outline the specific requirements that crypto providers must fulfill when applying for a license to operate within the European Union.