EU's Restrictive Stablecoin Rules Take Effect Soon and Issuers Are Running Out of Time
New EU rules for stablecoin issuers take effect on June 30, requiring authorization and imposing transaction limits. Stablecoins used for over 1 million transactions or exceeding 200 million euros daily will be restricted. The regulations aim to safeguard the monetary system and prevent stablecoins from replacing the euro. Companies can issue stablecoins denominated in assets other than the euro if not used as a means of exchange. The EBA is yet to define measurement methods for these values. Issuers must submit plans to comply with the limits and obtain necessary certification. Tether, Circle, and other issuers have three days to secure e-money licenses to operate legally in the EU. Circle aims to comply with MiCA regulations and obtain an e-money license by the deadline. The industry's future depends on the European Commission and incoming commissioners' decisions.
