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

PANews reported on November 13th that, according to Cryptopolitan, despite warnings from the European Central Bank (ECB) and the European Systemic Risk Board (ESRB) regarding the potential threat of stablecoins to financial stability, the European Banking Authority (EBA) believes that existing EU cryptocurrency regulations are sufficient to address these risks. An EBA spokesperson acknowledged the risk of "potentially large-scale redemption requests" but emphasized that the magnitude of the risk depends primarily on the stablecoin issuer's operating model and business scale.

Currently, the ECB and ESRB have called on Brussels to strengthen restrictions on the operations of stablecoin companies both within and outside the EU, particularly prohibiting the "multi-location issuance" model. This means avoiding the practice, as seen with global stablecoin companies behind USDC or USDT, of mixing tokens issued within the EU with those circulating in other regions. The ESRB warns that a sudden redemption of EU-issued tokens by investors outside the EU could trigger severe financial losses and a liquidity crisis. Officials told Reuters that they are concerned that if many investors withdraw funds simultaneously, the US might prevent the flow of dollar reserves to Europe, increasing the difficulty for stablecoin issuers to pay redemptions.