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EU Regulator Proposes to Curb Leverage in Crypto Trading Activities

The ESRB recommended restrictions on crypto firms’ lending to clients, especially for leveraged bets, and suggested higher collateral requirements for distributed finance products and stablecoins. On Thursday, May 25, an EU watchdog – the European Systemic Risk Board – recommended that European authorities should curb leveraged bets on digital assets by introducing limits for investment funds and exchanges. Over the last few years, with the growing number of market participants, crypto...

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