EU Finalizes Technical Standards for Crypto Firms Under MiCA

The European Banking Authority (EBA) has published the final draft of technical standards for prudential matters under the Markets in Crypto Assets (MiCA) legislation. These standards, developed in collaboration with the European Securities and Markets Authority (ESMA) and the European Central Bank (ECB), are part of the EU's wide-ranging MiCA rules for the crypto sector. The standards include criteria for stress testing programs, liquidity requirements for reserve assets, and recovery plan requirements for issuers. Key requirements include conducting stress testing based on plausible financial stress scenarios, allowing competent authorities to increase own funds requirements based on risk outlook and stress testing results. MiCA, which was passed last year, aims to regulate crypto companies and stablecoin issuers, fostering a more stable and transparent crypto market within the EU.