EU publishes draft rules for stablecoin issuer complaint procedures

Quick Take

The EU has published draft rules for stablecoin issuers under the bloc’s MiCA regulatory framework.

The EU has published draft regulatory standards for issuers of stablecoins when dealing with complaints.

Wednesday's Regulatory Technical Standards (RTS) set procedures for the "prompt, fair and consistent handling of complaints by holders of ARTs," or asset reference tokens, outlining specific guidelines and requirements for stablecoin issuer complaint management policies and procedures.

"Such a framework should support innovation and fair competition, while ensuring a high level of protection of retail holders and the integrity of markets in crypto assets," the EBA document added.

MiCA's definition of stablecoins

The bloc's Markets in Crypto Assets (MiCA) regulatory framework defines stablecoins that can reference several fiat currencies or other assets like cryptocurrencies as asset reference tokens (ARTs). This differs from stablecoins pegged solely to one currency's value, such as the euro or U.S. dollar.

The draft standards were released by European Banking Authority (EBA) in cooperation with the European Securities and Markets Authority (ESMA). They will be submitted to the European Commission for endorsement by the end of June. The standards will then need to undergo scrutiny by the European Parliament and the European Council before being published in the Official Journal of the European Union, which is the bloc's official record of current legislation.

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