The lawmakers and officials have agreed on new regulation policies on digital assets, which could have an impact on the users of cryptocurrency firms. Transaction caps for non-euro stablecoins will be reintroduced into the European Union (EU) to ensure digital currency security. The cap will help to restrict the transactions on stablecoins like $200 million (USD) of non-euro stablecoin transactions per day.
For the last two years, the EU government has wanted to launch the Markets in Crypto Assets (MiCA) framework for the crypto industry. This framework will help to combat crypto fundraising schemes in the EU nations. As a result, the organizations decided to develop a framework that would assist EU nations in maintaining their top position in cryptocurrency payment.
“This effectively means e-money tokens will have problems setting up transactions with EU-based crypto service providers, negatively affecting the market in the EU.”
Last week, investors related to digital currency firms were excited about the announcement of the removal of limitations on stablecoins other than the euro. But the new announcement made investors disappointed that the cap has restrictions on non-euro stablecoin transactions per day.
Recently, the International Monetary Fund (IMF) has also initiated a step for safer transactions in digital assets. The IMF published a report in the September edition of its flagship titled Finance and Development magazine, “Crypto Regulation: The Right Provisions Could Provide a Better and Safer Space for Technology.”
The Financial Action Task Force (FATF) has taken steps to provide common regulations for all digital asset service providers to overcome money laundering issues. The International Organization of Securities Commissions (IOSC) also issued certain provisions on crypto exchange platforms. The announcement of Libra’s “global stablecoin” grabbed the world’s attention and added greater impact to these efforts.
Some of the leading countries in crypto, like Japan and Switzerland, have introduced certain guidelines for digital assets and their service providers. Some of the countries, like the US, UK, UAE including the European Union, are at the drafting stage.
Source: https://www.thecoinrepublic.com/2022/09/29/reintroduction-of-non-euro-stablecoin-transactions-in-the-european-union/