EU, ECB Despite warnings, Promotion of stablecoin regulation…Application of the same standards for overseas issuance

The Financial Times reported on the 25th (local time) that the European Union (EU) Commission plans to announce regulations on stablecoins within days, despite warnings from the European Central Bank (ECB). This guideline includes the content that stablecoins issued outside the EU will be treated the same as those issued within the EU, which is expected to cause a significant impact throughout the industry.

According to multiple sources, the EU Commission plans to present clear standards for stablecoins that have so far been in a legal void through this guideline. Specifically, stablecoins issued by the same issuer outside Europe will also be subject to the same regulations as stablecoins of the same brand issued within the EU.

The ECB has expressed strong concerns about this move. The ECB pointed out that if offshore stablecoins become interchangeable within the EU, it could pose additional risks to the internal banking system if financial market instability increases.

Christine Lagarde, President of the ECB, also appeared before the European Parliament on the 23rd and warned, “Stablecoins could potentially threaten monetary policy and financial stability, and stricter regulations are needed, especially when crossing borders.”

This EU decision aims for the integration and development of the digital asset market through regulatory clarity, but it seems to be an important turning point for the future direction of cryptocurrency policy in Europe as it clashes with the central bank's caution.