The French delegation in the Council of the European Union lobbied for the reinstatement of the cap on stablecoin transactions backed by assets other than the euro in the MiCA regulation bill MiCA. According to The Block, citing its own sources.
The rule on the maximum permissible daily transfer amount for issuers at €200 million was reinstated a week after its removal from the document. The move was backed by representatives of Germany, Italy and the Netherlands.
The revised text also states that the limit does not apply to stablecoins used to purchase cryptocurrencies. However, it applies to spot trading of assets on exchanges, said Dimitris Psararakis, head of EU affairs at XReg Consulting.
According to him, the reinstated provision limits the amount of stablecoins backed by foreign currency that can be moved in a single day.
“In practice, stablecoin issuers will face trouble with transactions carried out by service providers in the EU, which will negatively affect the local market,” said Psararakis.
The European Parliament’s Committee on Economic and Monetary Affairs is expected to vote on the bill in October or November.
Earlier in July, the Council of the European Union and the European Parliament provisionally agreed the MiCA bill. Its first draft included limits on the volume of transactions of stablecoins backed by assets other than the euro.
The document also introduces rules for issuers of unbacked crypto assets, trading and custodial platforms.
The bill does not cover NFTs, but related provisions may be added later.
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