Regulation
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The daily transaction limit for non-euro stablecoins has been re-introduced into the draft European Union rules for cryptocurrencies. The restriction will affect transactions using stablecoins denominated in other currencies, such as the US dollar, up to the equivalent of 200 million euros per day, writes The Block, citing several people familiar with it.
According to the information voiced by the sources of the publication, the French delegation in the EU Council managed to restore this situation. The move comes a week after the conclusion of technical negotiations on the Crypto Asset Markets Regulations (MiCA), a comprehensive digital asset policy in the EU. Supporters of the digital asset industry have welcomed the removal of restrictions on the circulation of stablecoins backed by currencies other than the euro, but now they are returning again.
According to Dimitris Psarrakis, XReg Consulting’s head of EU affairs, the recently reinstated regulation limits the number of foreign exchange-backed tokens that can be traded in a single day.
“This effectively means that digital currency tokens will have problems settling transactions of crypto asset service providers in the EU, which will negatively affect the market in the EU,” Psarrakis said.
On Wednesday, a French delegation enlisted the support of Germany, Italy and the Netherlands to reinstate restrictions on non-euro stablecoins, Psarrakis said. Other industry sources monitoring the legislation (who asked not to be named because they did not have permission to speak to the press) confirmed the return of the provision and that French officials insisted on it.
The European Parliament’s Committee on Economic and Monetary Affairs is due to vote on the bill in October or November this year.
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