EU watchdog pushes for stablecoin ban: Report

**EU Regulatory Watchdog Targets Cross-Border Stablecoins in Major Cryptocurrency Crackdown**

European Union financial authorities are intensifying their cryptocurrency regulation efforts by potentially banning stablecoins issued through joint ventures between EU companies and international partners. This developing regulatory framework could significantly impact the global digital asset ecosystem and reshape how blockchain-based financial products operate across borders.

The proposed stablecoin restrictions highlight growing concerns among EU regulators about cross-jurisdictional cryptocurrency oversight and compliance challenges. These digital currencies, typically pegged to traditional assets like the US dollar, have become cornerstone infrastructure for DeFi protocols and Bitcoin trading platforms worldwide.

Market implications could be substantial, as stablecoins facilitate billions in daily cryptocurrency transactions and serve as essential liquidity bridges in decentralized finance applications. The regulatory scrutiny may force blockchain companies to restructure their operations or limit services within European markets.

This latest development underscores the evolving regulatory landscape surrounding digital assets, potentially affecting major cryptocurrency exchanges, DeFi platforms, and institutional investors operating in the EU. The watchdog's warning signals continued regulatory tightening as authorities seek greater control over the rapidly expanding cryptocurrency sector.