The EU is set to release stablecoin technical standards by the end of 2024, under the broader Markets in Crypto-Assets (MiCA) framework. These standards, developed by the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA), focus on areas such as authorization, stress testing, and transaction volume estimation. While stablecoin regulations became effective in June 2024, the full MiCA framework won’t be implemented until December.
Currently, the European Commission is reviewing 15 proposed technical standards related to stablecoins. Once approved, they will be examined by the European Parliament and European Council, then translated and formally adopted. The standards were first opened for public feedback in July 2023, followed by a final draft in March 2024. When fully published, these standards will provide stablecoin issuers with clear guidelines on compliance and testing, helping establish stronger oversight in the sector.
The broader MiCA regulations will enable crypto companies across the EU’s 27 member states to operate with a single license, simplifying operations and enhancing regulatory clarity within the single market.
