The European Banking Authority (EBA) has completed the draft technical standards under the Markets in Crypto-Assets Regulation (MiCA).
This development marks a proactive step in the regulation of the evolving cryptocurrency industry, following the implementation of MiCA last year.
The final draft outlines the reasonable measures creators of the technical standards deem necessary for cryptocurrency, stablecoin, and industry service providers. Some of the standards include changes in capital requirements, changes in liquidity supervision, and very stringent recovery plans for cryptocurrency issuers.
It is understood that issuers should undergo stress testing under specific financial stress conditions, which will help them manage operations during periods of volatility.
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According to analysts, this altcoin is currently one of the strongest currencies after surging nearly 1,500%.
Furthermore, the authorities outlined a process for regulators to impose higher financial requirements on issuers based on risk outlook and mandatory stress test results.
The standard also mandates issuers to make necessary capital adjustments within a specified timeframe (25 working days) to meet the heightened standards.
It also specifies concrete rules for the minimum liquidity levels of crypto assets, stipulating the required reserve asset ratios on a daily and periodic basis.
