Germany and Italy proposed to restrict the access of stablecoins in the European Union., 2026/04/03 11:50:31

Germany and Italy have submitted a joint document proposing stricter regulations for stablecoins within the European Union. The initiative aims to restrict the entry of stablecoin issuers into the European market and to enhance the powers of regulators.

According to the proposal, stablecoins issued by companies from non-EU countries will not be permitted to operate legally in the Eurozone unless the regulatory framework of their jurisdiction is recognized as equivalent to EU standards.

The European Banking Authority (EBA) is suggested to be granted the authority to completely prohibit the circulation of stablecoins in cases of significant violations by the issuer or when there is a threat to the interests of token holders in the EU. Major issuers may come under direct supervision of the EBA. This assessment will consider not only transaction volumes but also the international nature of the operations.

Additionally, it is proposed that stablecoin issuers be required to promptly transfer fiat funds from abroad to address any liquidity shortfalls.

“Asset reserves must be redistributed and effectively mobilized across borders into the Union without legal or operational barriers in the event of local liquidity shortages, including during crises or financial stress,” the document states.

The authors of the initiative justify their proposals by the need to strengthen the protection of financial markets in the Eurozone. The document was released ahead of a meeting of the working group on the integration and oversight of markets (MISP).

Previously, the European Central Bank announced that the launch of the digital euro for widespread circulation is planned for mid-2029.