On 5 December 2019, the Council of the EU (Council) published a press release stating that the Council and the European Commission (Commission) have adopted a joint statement on stablecoins.
The statement calls for a co-ordinated global response to tackle the challenges raised by global stablecoins and a emphasises the need to ensure legal clarity about the status of stablecoin arrangements. Entities intending to issue stablecoins, or conduct other activities involving them in the EU, should provide full and adequate information on how they intend to manage risks and operate their businesses, which will allow for a proper assessment against the applicable rules. However, the lack of adequate information means it is very difficult to reach definitive conclusions on whether and how the existing EU regulatory framework will apply.
The Council and the Commission state that global stablecoin arrangements should not begin operation in the European Union until the legal, regulatory and oversight challenges and risks have been adequately identified and addressed.