European Banking Authority (EBA) President José Manuel Campa said upcoming EU rules governing stablecoins will focus on ensuring issuers have diversified reserves, manage conflicts of interest and do not transfer risk to other players.
The group’s market rules for crypto assets, known as MiCA, will come into force in 2024, but cryptocurrency market participants should start adjusting their operations now, said José Manuel Campa, who will play a key role in its implementation by drafting subsidiary legislation .
MiCA requires issuers of stablecoins to have sufficient reserves to deal with turbulence “The EBA will pay special attention to the diversification of the reserve deposit component.”