Research conducted by the European Parliament suggests that countries outside the European Union should consider implementing stricter regulations for cryptocurrencies.
The report's author primarily expressed concerns about how potential implications, such as impacts on financial stability, reduced market attractiveness, and hindered mainstream adoption, might affect stablecoins.
David Becker 
The European Parliamentary Research Service (EPRS) has underscored the importance of stronger oversight from regulators outside the European Union to ensure increased stability and growth in the global cryptocurrency market.
Overview of crypto-asset regulations in EU, the United Kingdom and the United States. Source: europarl.europa.eu
As the implementation of the Markets in Crypto-Assets Regulation (MiCA) Act progresses towards its goal of December 2024, the EPRS report emphasized the need for a more robust regulatory framework in non-EU jurisdictions. The report expressed concerns about potential consequences, including impacts on financial stability, reduced market attractiveness, and hindered mainstream adoption of stablecoins
The report also pointed out the fragmented regulatory landscape in the United States, which involves various state-level and federal stakeholders, contributing to legal ambiguity and regulatory uncertainty. Additionally, it highlighted the divergence expected between the UK and the EU in terms of how crypto-assets are identified, citing the UK's Financial Services and Markets Act and a study conducted for the European Parliament.
In line with the impending MiCA regulations, the Malta Financial Services Authority (MFSA) initiated a public consultation on September 18 to adapt its crypto regulations, particularly for exchanges, custodians, and portfolio managers, to align with the EU's regulatory framework. This move comes as Binance announced plans to delist stablecoins in Europe, citing compliance with MiCA.
