Regulation of Cryptocurrency: An Analysis of the Proposed Markets in Crypto-Assets Regulation Emphasizing on the Issuer of Stablecoin

The master thesis analyzes the proposed Markets in Crypto-Assets Regulation published by the EU in September 2020. We provide explanations of the term ‘stablecoin’, its use as legal tender, as well as issuers and providers of stablecoin. We analyzed particular parts of the draft to how the proposal could impact issuers and providers of stablecoin. Additionally, we have looked at its overall objectives and addressed if it is understandable to the players in the crypto market. As of today, several types of crypto assets are not regulated. Our main findings are that the proposal fails to acknowledge the meaning of decentralization in the crypto market, along with provisions that may create legal uncertainty. Further, there are overlapping and technology-oriented definitions making it difficult to classify the different stablecoins. Therefore, it is challenging for the proposed regulation to achieve its overall objectives of legal certainty, investor protection, and to create one harmonized crypto market