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As mandated by the recently-implemented Markets in Crypto-Assets Regulation (MiCA), the European Union has taken another step toward establishing regulations around stablecoins.
The European Banking Authority (EBA) on Wednesday released a final draft of regulatory technical standards in partnership with the European Securities and Markets Authority (ESMA), which oversees markets in the EU. The standards establish protocols for stablecoin issuers when addressing complaints.
The standards ask issuers of asset-referenced tokens — known as stablecoins — to publish how they handle complaints and to have a standardized process for customers and users to submit them.
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“The issuer should acknowledge receipt of a complaint clearly mentioning the date of its receipt and, where an electronic complaint form is filed, provide the complainant with a copy of the complaint; assess whether the complaint is admissible and contains all relevant information necessary for the investigation and request immediately to the holders of asset-referenced tokens and other interested parties any additional information needed,” the draft standards state.
The EBA first released draft guidance for public comment in July 2023. Based on these comments, “the EBA decided to make a small number of targeted amendments,” the banking regulator said in a statement Wednesday. Changes include new provisions relating to data protection and updates to complaint forms to include a section for complainants to list legal representatives.
Wednesday’s final draft also comes months after the EBA released draft guidelines relating to how stablecoin and other cryptocurrency issuers should structure their recovery plans.
Read more: 2024 will be the year for stablecoins
“Issuers should include at least one recovery option that would strengthen the capital position and one recovery option aimed at improving the liquidity position of the issuer,” the EBA suggested in November.
This final draft for regulatory technical standards will be submitted to the European Commission for endorsement by the end of June 2024, the EBA said, before heading to the European Parliament and the Council for approval.