Based on the BIS Report, the absence of international guidelines for stablecoins can result in discrepancies, preventing their optimal use in the global financial market. The study surveyed eleven countries and highlighted the need for definitive regulations to address this issue. The lack of cross-border flexibility compounds the challenge of integrating stablecoins into the global financial system.
Most licensing systems require issuers to meet similar conditions, including setting aside reserves as a standard practice, and implementing risk management and anti-money laundering protocols.
Despite having some similarities, it’s important to note that there are significant variations. Factors such as the specific type of stablecoin and the way they’re reported for issuance can impact their regulatory framework. This could include being subject to banking laws, securities regulations, commodity rules, or even payment system guidelines.
In regulatory terms, the similarities are apparent when it comes to redeeming rights and defining stablecoins. However, the approach varies across jurisdictions. For example, some regions focus on regulating democratic and fiat-backed stablecoins specifically, while others, such as the UK and Japan, adopt a more stringent stance.
A BIS report pointed out that various design elements, perceived risks, and the specifics of the issuer are what lead to the diverse array of stablecoins available. This is seen as an issue, as it could pose challenges if a robust financial system is necessary to support them effectively.
This document shares some similarities with the BIS proposal from February, focusing primarily on the areas of disclosure, risk management, and redemption for joint governmental regulation of stablecoins.
Read More
- Cookie Run Kingdom: Shadow Milk Cookie Toppings and Beascuits guide
- Cookie Run Kingdom Town Square Vault password
- 10 Hardest Bosses In The First Berserker: Khazan
- Maiden Academy tier list
- `H&M’s Wild White Lotus Getaway`
- Russian Finance Ministry staffer calls crypto a ‘locomotive’ for development
- Girls Frontline 2 Exilium tier list
- ‘White Lotus’ Fans React to That Incest Kiss: “My Jaw Is On The Floor”
- Be Happy’s Abhishek Bachchan reveals how daughter Aaradhya gives him a reality check; says he did the same with dad Amitabh Bachchan
- Helmut Lang Announces New Sculptural Exhibition in Los Angeles
2024-04-11 03:00