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Stablecoins Get EU Complaints Procedures Draft

Last Updated March 14, 2024 3:27 PM
Eddie Mitchell
Last Updated March 14, 2024 3:27 PM
By Eddie Mitchell
Verified by Peter Henn
Key Takeaways
  • EU regulators are proposing comprehensive stablecoin complaints and recovery procedures.
  • Stablecoin regulations should come into effect as early as summer 2024.
  • Sweeping crypto regulations under MiCA come into effect in December 2024.

European Union (EU) regulators have issued a draft  set of standards for stablecoins as part of its effort to bring crypto assets under the landmark Markets in Crypto Asset (MiCA) regulations.

Though not final, the proposed standards represent the next step in the EUs effort to finalize policies around stablecoins.

EU Stablecoin Standards

The European Banking Authority (EBA) has worked with the European Securities and Markets Authority (ESMA) to establish complaints procedure rules for stablecoin issuers under the bloc’s sweeping MiCA regulatory framework.


The standards released by the EBA outline the procedures, templates, and stipulations for complaints received by issuers of what the MiCA defines as “asset reference tokens”, or ARTs, one of two legal definitions for a stablecoin within MiCA.

With regards to ARTs, the new guidance asks that issuers publish how they handle complaints. They must also adhere to a standardized complaints procedure for customers and users.

Under this guidance, issuers would have to follow a broad set of measures that establish transparency and accountability in the eyes of the EU. This would protect consumers and ensure that the MiCA framework lives up to its aims of supporting innovation and fair competition, all the while maintaining market integrity, and a high level of protection for retail customers.

Stablecoin Redemptions

Under MiCA, an ART isn’t a typical stablecoin, pegged to the value of an asset such as the US dollar such as Tether (USDT), but instead : “[…]stabilise their value by referencing another value or right, or combination thereof, including one or several official currencies”.

Examples of an ART under MiCA include: MakerDAO (DAI), Synthetix (sUSD), and Facebook’s ‘Libra’ (now known as Diem.)

E-money tokens, or EMTs, are the other type of stablecoin defined under MiCA.  The EBA has also launched a consultation  into so that it can establish guidelines for ART or EMT redemptions should an issuer not fulfill its MiCA obligations.

The likes of Tether (USDT) and USD Coin (USDC) fall within  the scrutiny of EMT regulation. Therefore they could soon be required to structure recovery plans should troubles arise. A November 2023 consultation paper  said:

“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.”

Stability a Priority

The news comes as the EU contemplates the creation of a digital euro  as part of the European Central Bank’s (ECB) central bank digital currency (CBDC) ambitions.

EU CBDC roadmap
The digital euro roadmap.

The full rollout of a CBDC comes with many financial implications. With just over a year to go until the CBDC goes into a “preparation phase”, the EU could also use stablecoins as a testing ground prior to a full rollout.

Stablecoin issuers will soon have to adhere to numerous new rules and regulations. So far, these new rules seem to be a net positive for both consumers and the industry at large.

It seems that the EU is giving stablecoins a great deal of its focus. Rules for stablecoins should come into effect by the end of the second quarter of 2024. Meanwhile, MiCA in its entirety comes into effect in December 2024.

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