European Banking Authority: There is currently no urgent need to revise regulations related to stablecoins.

PANews November 13 News, according to Cryptopolitan, despite the European Central Bank (ECB) and the European Systemic Risk Board (ESRB) issuing warnings about the potential threats of stablecoins to financial stability, the European Banking Authority believes that the existing cryptocurrency regulations in the European Union are sufficient to address these risks. The authority’s spokesperson acknowledged the risk of “potential large-scale redemption requests,” but emphasized that the level of risk largely depends on the operational model and business scale of stablecoin issuers.

Currently, the ECB and ESRB have called on Brussels to strengthen restrictions on stablecoin companies operating within and outside the EU, especially to prohibit the “multi-issuance” model, which involves avoiding situations like the global stablecoin companies behind USDC or USDT, where tokens issued within the EU are mixed with tokens circulating in other regions. ESRB warned that if investors outside the EU suddenly redeem tokens issued within the EU, it could trigger severe financial losses and liquidity crises. An official told Reuters that they are concerned that if many investors withdraw their funds simultaneously, the United States might block dollar reserves from flowing to Europe, increasing the difficulty for stablecoin issuers to pay redemption funds.