Search results for European Banking Authority
Crypto
ECB calls for overhaul of stablecoin reserve rules, citing liquidity risk
The European Central Bank and EU central banks have called for changing stablecoin reserve rules by replacing minimum bank-deposit requirements with liquidity-based standards. In a response submitted during a review of the EU’s Markets in Crypto-Assets regulation, the Eurosystem said large stablecoin deposits could increase banks’ liquidity risks. It proposed minimum liquidity requirements based on assets cashable within 1 and 5 business days and cited alternatives such as overnight repo and short-term government bills.
Crypto
Italy central bank tightens crypto screening to curb sanctions evasion linked to Russia and Iran
The Bank of Italy has told crypto asset service providers to strengthen sanctions screening for customers and transactions to prevent evasion of international financial sanctions. It issued supervisory guidance requiring internal policies, procedures and control systems to implement EU and Italian sanctions and to identify customers and transactions linked to sanctioned persons in crypto transfers. The move seeks compliance with existing EU rules and EBA guidance, amid concerns about Russia- and Iran-linked crypto activity.
Crypto
EU MiCA transition ends, pressure mounts on unlicensed crypto firms to halt operations
The European Union’s transition period for its Markets in Crypto-Assets regulation has ended, meaning crypto companies without authorisation can no longer legally provide services to EU customers. Such firms could face sanctions including multimillion-euro fines if they do not wind down operations. Industry and legal experts expect early enforcement to vary by member state. Compliance costs are estimated from 350,000 to 600,000 euros, and could rise to 2 million euros.
