It has been revealed in a document seen by Euronews that Germany and Italy are seeking broad new powers to exclude foreign stablecoin operators from the European Union unless their home countries comply with EU regulatory standards. This could result in the exclusion of some of the biggest crypto firms from one of the world’s largest financial markets.
Prior to a working party meeting over the bloc’s Market Integration and Supervision Package (MISP), the two nations outlined their stance in a joint discussion paper that was circulated on 27 March. By using words like “stability and sovereignty” to describe the European Union, the text makes it clear that this is more of a geopolitical move than a financial-regulation one.
Stablecoins are a type of cryptocurrency that have a constant value and are backed by actual money that holders can withdraw whenever they want. Their value is usually tied to a fiat currency like the dollar or the euro.
The paper stresses the need of creating a unified regulatory framework for worldwide stablecoins issued by third-country multi-issuance schemes in order to protect the integrity and independence of the European Union’s financial system.
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