EU Regulators Issue Draft Technical Standards for Multi-Currency Stablecoins

According to CoinDesk, the European Union's banking and markets regulators have released a set of draft technical standards for stablecoins that reference multiple currencies or assets. The standards are part of the EU's landmark Markets in Crypto Asset (MiCA) regulation. The European Banking Authority (EBA) has been collaborating with the EU's markets regulator, ESMA, to establish rules under MiCA. The publication is one of several batches the regulators will issue, and they are also consulting on other Regulatory Technical Standards (RTS). The RTS published outlines the requirements, templates, and procedures for complaints received by issuers of asset reference tokens (ARTs). Unlike stablecoins pegged to the value of a single currency like the euro or U.S. dollar, ARTs, such as Libra (later Diem) proposed by Meta a few years ago, can reference multiple currencies or other assets like cryptocurrencies. The MiCA regulation focuses heavily on requirements for stablecoin issuers. While MiCA as a whole is set to take effect in December, rules for stablecoins will come into force this summer. The regulators consulted on the draft standards between July and October last year.