These standards aim to ensure orderly and safe trading of stablecoins on the European market. EBA has developed these standards in cooperation with the European Securities and Markets Authority (ESMA) and submitted them to the European Commission.

These new regulations cover a wide range of activities of stablecoin issuers. Detailed rules are presented on how large stablecoin issuers, especially Tether and Circle, should conduct their operations within the European Union (EU).

The standards cover issues such as issuers’ authorization processes, stress tests, and estimating transaction values ​​as well as the number of transactions. According to the statement made by EBA, these standards are expected to become official by the end of 2024. This is considered an important development for the crypto market in Europe.

MiCA (Crypto Assets and Markets) rules, which provide the opportunity to provide services with a single license within the 27 member countries of the EU, came into force last year. While MiCA gives crypto companies the authority to operate across Europe, it also includes certain regulations for stablecoins.

MiCA’s rules regarding stablecoins came into force in June, and the remaining regulations of MiCA will be implemented in December this year. These regulations aim to manage crypto assets in a more orderly and transparent manner within the EU.

The European Commission is currently carefully reviewing the standards presented by the EBA. The commission will decide whether to accept the standards in their current form or request changes.

This process includes evaluating how appropriate the standards are in terms of both industry practices and legislation. Once approved, the standards will be subject to a detailed review process by the European Parliament and the European Council.

Following this review, the standards will move on to the translation and official adoption phases. Ultimately, the standards will be published in the Official Journal of the European Union. This newspaper is known as the official platform where official documents and information of the EU are published.

It is stated that the new standards were introduced to provide a certain order and security for stablecoin issuers. If the European Commission approves the standards, this framework will reduce uncertainties in the sector and enable stablecoins to be used in a more orderly manner. Additionally, these standards have the potential to increase investor confidence by contributing to reducing volatility and risks in the crypto market.

These developments are considered an important turning point in the crypto asset market within the EU. The new regulations will strengthen the role of stablecoins in the financial ecosystem in Europe and close regulatory gaps in the sector.

Additionally, the implementation of these standards could serve as an example for regulators in other regions and contribute to the adoption of a broader understanding of regulation in the global crypto market.

As a result, these technical standards developed by EBA and ESMA stand out as an important step towards the regulation of stablecoins in Europe. With these standards coming into force by the end of 2024, greater regulation and supervision will be provided in the crypto asset market in Europe.

These developments mean major changes and opportunities for both investors and crypto companies.