EU To Crack Down On Stablecoin Projects | PYMNTS.com

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The European Union (EU) is preparing to update its cryptocurrency rules that could make it more difficult for stablecoin projects, such as Facebook Inc.’s proposed Libra, CoinDesk reported.Valdis Dombrovskis, the EU’s executive vice president of the European Commission for an Economy that Works for People, told attendees of the Digital Finance Outreach 2020, a series of events for the 27-nation bloc on financial technology companies, that Europe must become the leader in crafting rules for digital finance.“This is a good chance for Europe to strengthen its international standing and to become a global standard-setter, with European companies leading new technologies for digital finance,” he said.Last fall, the Libra Association petitioned the Swiss Financial Market Supervisory Authority (FINMA) for a Swiss payment system license for its planned cryptocurrency. A decision on its coins, seen as a competitor of Bitcoin, is expected this year.While some cryptocurrencies, such as security tokens, are regulated by European law, most stablecoins, are not, CoinDesk reported.“Lack of legal certainty is often cited as the main barrier to developing a sound crypto-asset market in the EU,” Dombrovskis said.In January, the United Kingdom’s Financial Conduct Authority (FCA), the country’s banking …

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