<img src="https://irp.cdn-website.com/7965f6bb/dms3rep/multi/BIS+Global+Stablecoins+.jpg" /><br><div id="1668470589"> <p> <h3 class="m-size-16 m-text-align-center"><span class="m-font-size-16" m-font-size-set="true" style="display: initial;">The Bank for International Settlements has released guidelines for the regulation, supervision, and oversight of Global Stablecoins</span><span m-font-size-set="true" style="display: initial;" class="m-font-size-18"><span class="ql-cursor"></span></span></h3>
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<div class="dmNewParagraph" data-element-type="paragraph" data-version="5" id="1359943701" style="transition: opacity 1s ease-in-out 0s;"><p style="line-height: 1.5;"><span style="display: initial;">In light of the growing significance of global stablecoins (GSCs) and their possible effects on financial stability, the Bank for International Settlements (BIS) has laid out a detailed set of recommendations aimed at regulating and overseeing these widely embraced digital assets.</span></p><p style="line-height: 1.5;"><span style="display: initial;">In 2019, the Group of Twenty (G20) instructed the Financial Stability Board (FSB) to analyze regulatory concerns associated with GSC structures and to advise on suitable multilateral responses. In October 2020, the FSB introduced High-level Recommendations for the Regulation, Supervision, and Oversight of Global Stablecoin Arrangements. Following a review, the FSB released a finalized version in July 2023 as a component of its global regulatory framework for cryptoasset activities.</span></p><p style="line-height: 1.5;"><span style="display: initial;">In a recently published summary of recommendations, the BIS emphasized GSCs as stablecoins with significant potential reach and utility spanning multiple jurisdictions. Acknowledging the systemic significance that GSCs may attain, the organization stressed the necessity for strong regulatory frameworks to effectively address associated risks.<br/></span></p><p style="line-height: 1.5;"><span style="display: initial;">The summary described global stablecoins (GSC) as stablecoins with "an existing or potential reach and use across multiple jurisdictions that could become systemically important," clarifying the scope of the recommendations.</span></p></div>
<div class="u_1250789679 dmNewParagraph" data-element-type="paragraph" id="1250789679" style="transition: none 0s ease 0s; display: block; text-align: left;" data-version="5"><p class="text-align-left" style="line-height: 1.5;"><span style="display: initial;">"Risk management frameworks should be established that thoroughly address all material risks related to their functions and activities, particularly concerning operational resilience, cybersecurity protections, and anti-money laundering/countering the financing of terrorism measures, along with 'fit and proper' prerequisites, where applicable, and in accordance with jurisdictions’ laws and regulations," stated the BIS.</span></p><p class="text-align-left" style="line-height: 1.5;"><span style="display: initial;">The BIS's recommendations encompass ten key areas, each vital for encouraging responsible innovation and securing the stability of the GSC ecosystem:</span></p> <ol class="defaultList ordered"><li class="text-align-left" style="line-height: 1.5;"><span style="display: initial; font-weight: bold;">Regulatory Preparedness:</span><span class="" style="display: initial;"> <span style="display: initial;">The BIS underscored the importance of global jurisdictions being sufficiently prepared to regulate and supervise GSC arrangements effectively. This preparedness includes cross-border cooperation, coordination, and information exchange, essential for managing the international characteristics of GSC activities.</span></span></li><li class="text-align-left" style="line-height: 1.5;"><span class="" style="display: initial; font-weight: bold;"><span style="display: initial; font-weight: bold;">Comprehensive Oversight:</span>
</span><span style="display: initial;">A thorough oversight mechanism is vital to rigorously monitor every aspect of GSC operations and functions. This oversight should cover issuance, circulation, redemption, and stabilization efforts, minimizing the chances of systemic risks.</span></li><li class="text-align-left" style="line-height: 1.5;"><span class="" style="display: initial; font-weight: bold;"><span style="display: initial; font-weight: bold;">Cross-Border Collaboration:</span>
</span><span style="display: initial;">Considering the global nature of GSCs, the recommendations advocate for improved cross-border collaboration, coordination, and information sharing among regulatory bodies. This joint effort is critical for ensuring effective oversight and regulatory uniformity.</span></li><li class="text-align-left" style="line-height: 1.5;"><span class="" style="display: initial; font-weight: bold;">Transparent Governance:</span><span class="" style="display: initial;"> <span style="display: initial;">GSC issuers are encouraged to develop transparent governance frameworks and decentralized operations, fostering accountability and reducing power concentration within the ecosystem.</span></span></li><li class="text-align-left" style="line-height: 1.5;"><span class="" style="display: initial; font-weight: bold;"><span style="display: initial; font-weight: bold;">Effective Risk Management:</span>
</span><span style="display: initial;">Robust risk management frameworks must be established to identify, evaluate, and mitigate various risks related to GSCs, including market volatility, liquidity risks, and cyber threats.</span></li><li class="text-align-left" style="line-height: 1.5;"><span style="display: initial; font-weight: bold;">Secure Data Storage:</span><span class="" style="display: initial;"> <span style="display: initial;">Proper safeguards should be in place to ensure secure storage of GSC-related data, alongside provisions for authorized access by regulatory bodies to support oversight and monitoring efforts.</span></span></li><li class="text-align-left" style="line-height: 1.5;"><span class="" style="display: initial; font-weight: bold;"><span style="display: initial; font-weight: bold;">Recovery and Resolution Mechanisms:</span>
</span><span style="display: initial;">Plans and mechanisms for the recovery and resolution of GSCs during instances of financial distress should be established, ensuring protection against potential disruptions to financial stability.</span></li><li class="text-align-left" style="line-height: 1.5;"><span class="" style="display: initial; font-weight: bold;"><span class="m-font-size-16" style="display: initial; font-weight: bold;">Transparent Disclosures:</span>
</span><span style="display: initial;">GSC issuers need to provide clear and timely disclosures regarding their operations, financial status, and risk exposure, allowing investors and regulators to make informed decisions.</span></li><li class="text-align-left" style="line-height: 1.5;"><span class="m-font-size-16" style="display: initial; font-weight: bold;">Redemption Rights and Prudential Requirements:</span><span class="" style="display: initial;"> <span style="display: initial;">There should be explicit guidelines concerning redemption rights, stabilization mechanisms, and prudential requirements to ensure the stability and resilience of GSCs across various market conditions.</span></span></li><li class="text-align-left" style="line-height: 1.5;"><span class="" style="display: initial; font-weight: bold;"><span style="display: initial; font-weight: bold;">Compliance Obligations:</span>
</span><span style="display: initial;">Before initiating operations, GSC issuers must demonstrate compliance with all regulatory, supervisory, and oversight requirements, securing necessary approvals and licenses from relevant authorities.</span></li></ol>
<p class="text-align-left" style="line-height: 1.5;"><span style="display: initial;">"These recommendations aim to encourage reliable and effective regulation, supervision, and oversight of GSCs and stablecoins with the potential to evolve into GSCs across jurisdictions," the BIS noted. Furthermore, the BIS promotes a technology-neutral approach that emphasizes underlying activities and risks, ensuring regulatory consistency in an ever-evolving digital environment.</span></p><p class="text-align-left" style="line-height: 1.5;"><span style="display: initial;">By following these recommendations, regulatory entities can navigate the complexities of the GSC landscape, promoting an environment conducive to innovation while protecting financial stability globally.</span></p></div> <div data-element-type="dYouTubeId" class="u_1833245722 youtubeExt dmNoMark youtube-padding-fix" id="1833245722"> <p>
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<div class="u_1636413337 dmNewParagraph" data-element-type="paragraph" data-version="5" id="1636413337"><p class="text-align-center"><span style="display: initial; font-weight: bold;">Disclaimer:</span></p><p class="text-align-center"><span style="display: initial;">GlobalStablecoins.com is a resourceful site providing news about cryptocurrencies, blockchain companies, blockchain products, and blockchain events. It should not be construed as investment advice. Please consult an advisor before making any investments in ICOs, cryptocurrencies, crypto-assets, security tokens, utility tokens, exchange tokens, global stablecoins, stablecoins, or eMoney tokens. GlobalStablecoins.com is not liable, directly or indirectly, for any losses or damages incurred, alleged, or otherwise, in connection to the use or reliance on any content found on the site.</span></p><p class="text-align-center"><span style="display: initial; font-weight: bold;">Affiliate Disclosure / Sponsored Posts:</span></p><p class="text-align-center"><span style="display: initial;">If a sponsored post mentions any crypto project, we urge our readers to perform due diligence before proceeding. GlobalStablecoins.com does not recommend that any cryptocurrency be bought, sold, or held. Please conduct your own research and consult your financial advisor before making investment decisions.</span></p><p class="text-align-center"><span style="display: initial; font-weight: bold;">Before investing in crypto-assets, you should consider the following,</span></p><p class="text-align-center"><span style="display: initial; font-weight: bold;">Crypto-assets are deemed very high-risk, speculative investments.</span></p><p class="text-align-center"><span style="display: initial; font-weight: bold;">If you invest in crypto-assets, you should be prepared to lose all your funds.</span></p><p class="text-align-center"><span style="display: initial;">All sponsored posts are compensated by crypto projects, coin foundations, advertising firms, PR firms, or other marketing entities. GlobalStablecoins.com is not associated with any marketing agency, nor are we owned by any crypto or blockchain foundation.</span></p><p class="text-align-center"><span class="" style="display: initial;"><span style="display: initial;">The aim of offering sponsored posts to our advertisers is to support the daily operational expenses of GlobalStablecoins.com.</span>
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</div>BIS Urges Global Regulation of Stablecoins to Ensure Stability[embed]https://www.youtube.com/watch?v=vZhTzZNiXLY[/embed]
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