EU Regulator Urges Companies to Limit Non-compliant Stablecoins

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The European Union is looking to regulate stablecoins that do not follow the MiCA regulations, citing concerns over their potential risks and challenges.

These digital assets, which are intended to improve financial transactions and stability in the crypto industry, are of particular concern due to their lack of compliance with regulatory standards.

To address this issue, the European Securities and Markets Authority is recommending stricter measures, including requiring authorization and supervision, and ensuring that stablecoins have proper reserves.

In addition, the ESMA may also impose limits on stablecoin issuance and transparency requirements to avoid any negative impacts on the financial system.