The European Union has made progress in regulating stablecoins by releasing a final draft of regulatory technical standards in accordance with the Markets in Crypto-Assets Regulation (MiCA). The standards, developed by the European Banking Authority (EBA) in collaboration with the European Securities and Markets Authority (ESMA), outline procedures for stablecoin issuers to follow in addressing complaints. These protocols require issuers of stablecoins to disclose their complaint-handling processes and provide a standardized method for customers to submit complaints. This development is a step towards establishing clearer regulations for stablecoins in the EU. The issuer needs to confirm they have received a complaint by stating the date it was received, and if the complaint was submitted electronically, they should give the complainant a copy of it. They must then determine if the complaint is valid and has all the necessary information for investigation, and ask for any additional information needed from holders of asset-referenced tokens and other involved parties. The draft standards were initially released by the EBA for public feedback in July 2023. The banking regulator stated on Wednesday that, following these comments, they have decided to implement a few specific amendments. The updates feature new rules on data protection and changes to complaint forms to allow complainants to list their legal representatives. The final draft was released Wednesday, following previous guidelines by the EBA on recovery plans for stablecoin and cryptocurrency issuers. Learn more: Stablecoins are predicted to surge in 2024. The EBA recommended in November that issuers should have at least one recovery option to boost their capital and another to enhance their liquidity. The EBA announced that the final draft of these regulatory technical standards will be sent to the European Commission for approval by June 2024, followed by review by the European Parliament and the Council. Stay informed by signing up for our free daily newsletter to catch the latest updates.