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Europe’s upcoming regulatory framework will introduce significant banking concerns for stablecoin issuers that could threaten the stability of the wider crypto space, according to Paulo Ardoino. The Markets in Crypto-Assets Regulation (MiCA) is the first comprehensive regulatory framework for the crypto industry and is set to go into full effect on Dec. 30. Under MiCA, stablecoin issuers will be required to hold at least 60% of reserve assets in European banks. Considering that banks can loan up to 90% of their reserves, it could introduce “systemic risks” for stablecoin issuers, according to …

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