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European Systemic Risk Board Proposes Ban on Multi-Issuance Stablecoins
European Systemic Risk Board Proposes Ban on Multi-Issuance Stablecoins
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BTCCSquare news:
The European Systemic Risk Board (ESRB) has recommended a ban on stablecoins issued by entities operating across EU and non-EU jurisdictions. This move, aimed at safeguarding financial stability, reflects growing regulatory scrutiny over crypto assets.
European Central Bank officials warn of regulatory gaps in overseeing non-EU stablecoins, while Italian authorities emphasize risks posed by multi-issuance models. The EU's exploration of a digital euro underscores concerns about global stablecoin dominance.
Though non-binding, the ESRB's proposal could prompt stricter enforcement against major issuers like Circle and Paxos. Market participants await potential Ripple effects across crypto markets as Europe tightens its regulatory framework.
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