Major stablecoins must comply with the same safeguards as traditional forms of payment, global regulators said on Wednesday, tightening controls over a struggling cryptocurrency industry.
Stablecoins are cryptocurrencies designed to have a stable value against traditional currencies or commodities and avoid the volatility that makes bitcoin and other digital assets impractical for most commerce.
Iosco, the global securities regulator, and the committee of the Bank for International Settlements (BIS), a forum for central banks, said they had formally adopted proposals put up for public consultation last October.
The new guidance shows when existing payments industry rules should apply to large stablecoins, marking a major step forward in enforcing “same risk, same regulation,” they said.
“We expect the same level of robustness and strength in these aspects in systemically important stablecoin businesses,” Ashley Alder, chairman of Iosco and chief executive of the Hong Kong securities regulator, said in a statement.
The guidance covers risk management, governance and transparency standards.
“Recent developments in the cryptocurrency market have again brought urgency to policymakers to address the potential risks posed by cryptocurrencies, including stablecoins, more broadly,” said Jon Cunliffe, Chair of the BIS Committee and Vice President of the Bank of England.
Global regulators are expected to go further in October, when the Financial Stability Board, a global regulator that includes Iosco, proposes rules for cryptocurrencies in general.
Source: CNN Brasil
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