The EBA has formulated technical standards (RTS) to prevent conflicts of interest between users and issuers of stablecoins – tokens pegged to the value of real assets (ART).

The European Banking Authority (EBA) reports that the new technical standards have been prepared as part of the EU Markets in Crypto-Assets Regulation (MiCA) and represent the regulatory framework that defines the procedure for the issuance and distribution of stablecoins.

The EBA states that issuers of tokens linked to the value of real assets are required to provide investors who are considering purchasing them with comprehensive information to objectively assess the likelihood of a conflict of interest between issuers and stablecoin holders.

In particular, provide a justification for the fair value of stable coins, disclose the purposes of attracting investment in their projects, remuneration schemes for the parties, and also pay special attention to resolving conflicts of interest that may arise in relation to the reserves of the underlying asset or its market value.

Let us recall that the European Banking Authority previously recommended that central banks in the Eurozone block transactions using stablecoins if they pose a threat to the country’s monetary policy.