EU is working on new stablecoin regulations
The European Union aims to become a trendsetter on the global financial markets, and it is already starting with cryptocurrency. As reported by CoinDesk, in a speech given during the Digital Finance Outreach 2020, the EU’s VP of the European Commission Valdis Dombrovskis said that European companies are planning to take leading roles in digital finance.
Cryptocurrency regulations in Europe already exist, although there are certain cryptocurrencies not governed by the law, such as stablecoins. Because of this lack of regulation within the EU, it is harder for European countries to have a strong presence in the cryptocurrency market.
Although some member states have made attempts to resolve the situation, it seems that a unified regulation is needed for creating a standard within the bloc. EU is planning to test the new regulation so that the experimental solution can be closely observed by the experts.
Stablecoins have become the target of the new regulation because of their disruptive potential. Since these cryptocurrencies operate globally, they pose challenges to traditional currencies and traditional financial institutions. Possibly any cryptocurrency that allows for many cross-border transactions could become considered for regulation.