2024

Chair

Bitcoin

April

Read

A report published by the Financial Stability Institute on Tuesday warned about the need for uniform regulatory frameworks for stablecoins across different countries. 
The FSI, a collaboration between the Bank for International Settlements (<a href="https://crypto.news/tag/bis/" data-type="link" data-id="https://crypto.news/tag/bis/" rel="">BIS</a>) and the Basel Committee on Banking Supervision, emphasized the critical role of consistent policies in bolstering the global financial system. 
“Stablecoins may still be unregulated or lightly regulated in other jurisdictions,” said the <a href="https://www.bis.org/fsi/publ/insights57.htm" data-type="link" data-id="https://www.bis.org/fsi/publ/insights57.htm" target="_blank" rel="">report</a>, 
Authored by FSI Deputy Chair Juan Carlos Crisanto and Senior Advisors Johannes Ehrentraud and Denise Garcia Ocampo, the document points out that despite common <a href="https://crypto.news/tag/crypto-regulation/" rel="">regulatory</a> themes, differences largely stem from stablecoins’ unique designs and perceived risks. The report argues that the fragmentation could challenge financial stability worldwide. 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 Across jurisdictions, emerging <a href="https://twitter.com/hashtag/Stablecoin?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="">#Stablecoin</a> regulations strive to achieve a set of common objectives such as ensuring market integrity, consumer protection and financial stability while enabling innovation in payment systems <a href="https://twitter.com/hashtag/FinancialStabilityInstitute?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="">#FinancialStabilityInstitute</a> <a href="https://t.co/yKnAsqMv6v" target="_blank" rel="">https://t.co/yKnAsqMv6v</a> <a href="https://t.co/kQu0IJ7RbS" target="_blank" rel="">pic.twitter.com/kQu0IJ7RbS</a>— Bank for International Settlements (@BIS_org) <a href="https://twitter.com/BIS_org/status/1777672833197285574?ref_src=twsrc%5Etfw" target="_blank" rel="">April 9, 2024</a>
 </blockquote>
 <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
 You might also like: <a href="https://crypto.news/analyst-predicts-bitcoin-to-hit-150k-by-2025-uptick-in-microstrategy-stock/" rel=""> Analyst predicts Bitcoin to hit $150k by 2025, uptick in Microstrategy stock </a> 
Countries have been grappling with <a href="https://crypto.news/tag/stablecoin/" data-type="link" data-id="https://crypto.news/tag/stablecoin/" rel="">stablecoin</a> regulation for years. The U.K. recently recognized stablecoins as a payment method in 2023, and the European Union implemented the Markets in Crypto Assets (<a href="https://crypto.news/tag/mica/" data-type="link" data-id="https://crypto.news/tag/mica/" rel="">MiCA</a>) regulation to oversee stablecoin activities. 
Japan has also introduced <a href="https://crypto.news/circle-eyes-stablecoin-launch-in-japan-as-new-policies-take-effect/" data-type="link" data-id="https://crypto.news/circle-eyes-stablecoin-launch-in-japan-as-new-policies-take-effect/" rel="">regulations</a>, while the U.S. contemplates similar <a href="https://crypto.news/us-lawmakers-get-very-very-close-to-agreement-on-stablecoin-bill/" data-type="link" data-id="https://crypto.news/us-lawmakers-get-very-very-close-to-agreement-on-stablecoin-bill/" rel="">legislative measures</a>. The FSI’s findings indicate varying stablecoin definitions and categorizations, alongside inconsistencies in reserve asset disclosure requirements by issuers, could endanger financial stability. 
The report advocates for a globally consistent regulatory approach to mitigate risks, prevent regulatory arbitrage, and ensure fairness within the digital asset landscape. Moreover, it underscores the importance of ensuring stablecoins are interoperable with central bank digital currencies (<a href="https://crypto.news/tag/cbdc/" data-type="link" data-id="https://crypto.news/tag/cbdc/" rel="">CBDCs</a>) and other digital assets to promote a cohesive financial ecosystem. 
International bodies like the International Monetary Fund and the Financial Stability Board echo the call for global standards, which either issue or develop universal norms for stablecoins. 
 Read more: <a href="https://crypto.news/bis-recommendations-stablecoin-regulation/" rel=""> BIS issues recommendations for global stablecoin regulation </a>

Financial Stability Institute calls for uniform stablecoin regulation

crypto.news

Other articles published on Apr 9, 2024

Chinese police detain STFIL member, Will this affect Filecoin?

Beyond Halving: Expert Predicts Bitcoin To Soar Above $200,000 With Surprising Catalyst

Filecoin liquid staking platform STFIL’s team members under investigation

Breaking: Binance CEO Discloses Key Details on Crypto Exchange’s Headquarters

Bitcoin will crash after the Halving! According to Arthur Hayes

Capital Shift As Solana (SOL) & Ripple (XRP) Investors Bet on Kelexo (KLXO) to Lead the Lending M...

Join our free newsletter for daily crypto updates!