Copy link
Increase text size
Decrease text size
Link copied

Iosco examines regulatory issues from using global stablecoins

Image by Proshare Intelligent Investing

Wed, 25 Mar 2020, 14:15 pm UTC

The Board of the International Organization for Securities Commissions (IOSCO) published a report identifying implications of global stablecoins for securities market regulators.

The report entitled “Global Stablecoin Initiatives” examines the different regulatory issues arising from the use of global stablecoins. It also explores how the IOSCO Principles and Standards could apply to the arrangements. IOSCO’s Fintech Network prepared the report as part of its initiatives to evaluate global stablecoins proposals from the perspective of securities market regulators.

The report described “stablecoins” as a type of crypto-asset or assets that may be considered securities in certain jurisdictions. They have no legal or agreed definition itself and are marketed as having less price volatility compared to other crypto-assets.

“Stablecoin initiatives often aim to create a store of value and means of exchange that is global, efficient and accessible. While stablecoins seek to reflect a set of characteristics (i.e. price stability) they do not form a self-contained type of crypto-asset,” the report noted.

Stablecoins could be pegged and or backed by particular assets, controlled algorithmically, or their value can float freely. However, there are several stablecoins currently-traded that are not backed by assets. Stablecoin holders are not entitled to redemption at face value.

The report added that stablecoins could fall under several categories because it exhibits a wide range of different features. Thus, it could fall within or outside a variety of different regulatory frameworks for financial instruments or services.

Although they are called stablecoins, they are neither “stable” nor “coins” in the true sense of either word. Also, although “stablecoin” is used as a marketing term that has been widely adopted by the industry, there are more neutral terms that may be more accurate.

Due to the cross-border and cross-agency of the existing and new stablecoin structures, IOSCO is working with international bodies and standard setters including the Financial Stability Board (FSB).

They will work together to understand the stablecoin proposals and risks better. FSB is currently examining the regulatory issues raised by global stablecoin arrangements as mandated by the G20 in June 2019 and will publish a consultative report in April 2020.

Fintech Network will continue to assess key issues that may arise from the analysis in the report, and analyze any new, emerging stablecoin proposals.

Meanwhile, Binance.US CEO Catherine Coley is encouraging the United States to use stablecoins as emergency payments amid the coronavirus outbreak. Coley stressed that stablecoins offer speed and safety which are significantly important at this time when the people are advised to stay at home because it can be distributed digitally.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
  • Moses
  • 2020.06.27 04:13:33
I am a cryptocurrency trader and i make over 200% daily, If you are interested,i can teach you how to trade and also help you achieve your goal in life with crypto i can turn
$4500 into $35000 in less then four weeks,now that bitcoin has low prices...please note that cryptocurrency trading is bitcoin unlike binary and Forex,bitcoin is traded for altcoins also you can reach to me if you are new to bitcoin and to give you more info and guideline on how to invest smartly, this is opportunity life time knocking on your door inbox me for more info....contact me on whatsapp :+12067425358 happy new year to you all ...........................................
  • 0
  • ·
  • 0
More
  • Bitcoin (BTC) $10,733.10 (-1.33%)
  • Ethereum (ETH) $355.33 (-0.76%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Bitcoin Cash (BCH) $226.87 (-1.13%)
  • Binance Coin (BNB) $27.77 (+5.91%)
  • Bitcoin (BTC) $10,733.10 (-1.33%)
Feb 21, 2020 (Friday)
12:01
Paxos launches blockchain-based securities settlement solution with Credit Suisse and Instinet
12:00
Brazil to launch new payment system in response to cryptocurrencies
11:59
Digital currency exchange Coinbase Pro lists Kyber Network token
11:57
Norwegian Air to soon start accepting crypto payments
10:21
Swedish central bank begins CBDC pilot with Accenture
09:51
Italian soccer team Juventus launches ethereum-based digital collectibles with Sorare
Feb 20, 2020 (Thursday)
14:16
Telecom companies complete cross-carrier mobile payments using blockchain
11:53
National Stock Exchange of Australia to develop DLT-based digital securities trading platform
11:00
South Korean ICO project discontinued, to return $7.5M to token holders
10:36
Samsung maintains crypto support in soon-to-launch Galaxy S20
09:41
BIS appoints Innovation Hub heads to lead Singapore and Switzerland
09:15
Coinbase becomes first crypto company to receive Visa principal membership
08:59
Dubai Economy and six banks launch KYC Blockchain Consortium
08:26
Crypto Technicals: ETH/USD under downside pressure after 'Bearish Engulfing' pattern
07:12
Tim Draper buys $1M worth of Aragon Tokens to create digital courts for DAOs
06:13
Renewable energy firm Acciona commits to take CBI’s blockchain-based carbon credits trading platform global
05:02
Crypto Technicals: BTC/USD trades below 21-EMA, break below 4H 200 MA (9386) to trigger further downside
04:56
Crypto exchange Coinfloor to launch a simplified bitcoin buying service
04:35
Indonesia’s customs department joins IBM- Maersk blockchain shipping platform “TradeLens”
Feb 19, 2020 (Wednesday)
12:46
Crypto custodian BitGo acquires digital securities startup Harbor
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft