The Financial Stability Board (FSB) is expected to release high-level recommendations for the regulation of stablecoins in the coming months. These recommendations will target the strengthening of governance frameworks, redemption rights, and stabilisation mechanisms for stablecoins, which are cryptocurrencies that are pegged to the value of other assets, such as the US dollar or euro. However, FSB Chair Klaas Knot has warned that many existing stablecoins may not meet these international standards, and that more measures may be necessary to ensure financial stability.
Regulators around the world have been increasing their oversight of payments-focused stablecoins, many of which are backed by fiat currency reserves or unsecured short-term debt. Despite efforts by stablecoin issuers to reduce reliance on private debt and improve transparency, Knot's message suggests that further action may be needed. In fact, Knot has noted that existing stablecoins may not meet international norms set by payments or securities standard setters.
In February 2022, the FSB warned of the rapid escalation of crypto risks to financial stability. This, along with the collapse of several companies in the crypto industry, has spurred regulators to increase their efforts to oversee the sector. The FSB plans to finalise its recommendations for regulating crypto and stablecoins by July 2023. Additionally, it will collaborate with other standard-setting bodies to determine how to regulate decentralised finance (DeFi) and is planning a paper with the International Monetary Fund (IMF) on regulatory issues associated with crypto.
The release of recommendations from international standard setters for the regulation of crypto and stablecoins is scheduled for July 2023.
Source: https://www.fsb.org/wp-content/uploads/P200223-1.pdf
Disclaimer:
GlobalStablecoins.com is an informational website that provides news about coins, blockchain companies, blockchain products and blockchain events. Don’t take it as investment advice. Speak to an advisor before you risk investing in an ICO, Cryptocurrencies, Cryptoassets, Security Tokens, Utility Tokens, Exchange Tokens, Global Stablecoins, Stablecoins or eMoney Tokens. GlobalStablecoins.com is not accountable, directly or indirectly, for any damage or loss incurred, alleged or otherwise, in connection to the use or reliance of any content you read on the site.
Affiliate Disclosure / Sponsored Posts:
If a Sponsored Post contains any mention of a crypto project, we encourage our readers to conduct diligence prior to taking further action. GlobalStablecoins.com does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.
GlobalStablecoins.com may receive compensation for affiliate links. Should you perform activities in relation to an affiliate link, it is understood that some form of compensation might be made to GlobalStablecoins.com. For example, if you click on an affiliate link, and sign up and trade on an exchange, GlobalStablecoins.com may receive compensation.
Before you invest in Cryptoassets you should be aware of the following,
Cryptoassets are considered very high risk, speculative investments.
If you invest in Cryptoassets you should be prepared to lose all your money.
All Sponsored Posts are paid for by crypto projects, coin foundations, advertising firms, PR firms, or other marketing agencies. GlobalStablecoins.com is not a subsidiary of any marketing agency, nor are we owned by any crypto or blockchain foundation.
The purpose of offering Sponsored Posts to our advertisers is to help fund the day-to-day business operations at GlobalStablecoins.com.
If you come across a Sponsored Post which you believe is fraudulent and/or “scammy,” please contact us and we will perform an immediate investigation.
All Rights Reserved | GlobalStablecoins.com