EU Heavyweights Want Stablecoins to be Regulated Before Being Allowed to Operate

EU Heavyweights Want Stablecoins to be Regulated Before Being Allowed to Operate

By Abhi K | News | 16 Sep 2020


Five major European nations have called for stablecoin regulations, as fears mount over state sovereignty and consumer protection, according to a Reuters report published on September 11.

  • France, Germany, Italy, the Netherlands and Spain have all asked the European Commission to prepare strict regulation for the stablecoin market
  • Officials have asked for stablecoins operations to be stopped until after regulation has been formed
  • Authorities fear that it might weaken the sovereignty of national currencies, and endanger consumers
  • Among other requirements, officials want stablecoins to be backed by reserve assets to be denominated in Euros or other EU currencies
  • Authorities have felt this way since the introduction of Facebook’s Libra, which received flak from lawmakers across the world
  • Regulatory proposals are expected at the end of September

Abhi K
Abhi K

Technophile, cryptocurrency enthusiast and journalist.


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