The Bank for International Settlements has issued a set of recommendations aimed at regulating global stablecoins.
The Bank for International Settlements (BIS) noted that the widespread adoption and reach of global stablecoins (GSCs) could pose risks to domestic and international financial stability.
The BIS emphasizes robust regulation and supervision of GSC arrangements to mitigate risks. The recommendations encourage global jurisdictions to prepare for overseeing GSCs, focusing on cross-border cooperation and information sharing.
You might also like: Nigeria fines Binance $10b in forex-rate manipulation probe
The bank also advocates for risk management frameworks that address operational resilience, cyber security, anti-money laundering measures, and compliance with relevant laws and regulations.
Additionally, BIS stresses the importance of data storage, access to data, redemption rights, and prudential requirements in managing GSC risks. While acknowledging the potential of stablecoins to enhance financial service efficiency, BIS warns of the financial stability risks they may introduce.
Read more: BIS sets 2024 strategy with key focus on CBDC and tokenization
