UniCredit Bank of Italy warns: Under MiCA rules, Europe may struggle to contain the crypto banking crisis.

CoinFeed reported on May 29th, citing CoinDesk, that Elena Carletti, an executive at UniCredit Bank in Italy, warned that Europe may be ill-equipped to handle financial shocks related to crypto companies and banks. Carletti pointed out that when Silicon Valley Bank and Signature Bank collapsed in 2023, the US decision to protect all deposits, including funds held by stablecoin issuers, helped stabilize the crypto market. Carletti stated that Europe cannot easily adopt the same measures. The EU's MiCA rules require stablecoin issuers to hold reserve assets in liquid assets such as bank deposits and government securities, which links them more closely to traditional banks. However, the European deposit guarantee system typically only protects a maximum of €100,000 per bank per depositor.