Global stablecoin may face regulatory storm, IOSCO has stepped in

According to news on March 26, the global securities regulatory agency "International Organization of Securities Commissions" (IOSCO) stated in its latest report that the Global Stablecoin Program may present securities or other regulated financial instruments or services based on its structure. Typical characteristics.

At the same time, the International Organization of Securities Commissions (IOSCO) and the Payment and Market Infrastructure Committee (CPMI) conducted a separate preliminary analysis of the application of the CPMI-IOSCO Financial Market Infrastructure Principles (PFMI), which concluded that:

"The Financial Market Infrastructure Principles (PFMI) apply to global stablecoins."

In addition, the International Organization of Securities Commissions (IOSCO) has established a stablecoin working group within its fintech network to consider and evaluate global stablecoin proposals from the perspective of securities market regulators.

全球稳定币或面临监管风暴,国际证监会组织(IOSCO)已介入

Four types of stablecoins

It is reported that the types of stablecoins mentioned in the report are:

  1. Stable currency anchored with fiat currency : Crypto assets can be linked to one or more fiat currencies, which may or may not be protected in deposits;
  2. Anchor with other real-world assets : Crypto assets can also be related to real-world assets, such as securities, commodities, real estate, financial instruments or other assets;
  3. Other crypto asset stablecoins : crypto assets can also be associated with one or more crypto assets;
  4. Algorithmic control of stablecoins : Crypto assets can use algorithms that simulate monetary policy. For example, stablecoins can use an algorithm that adjusts the supply of tokens to meet demand to achieve specific cryptocurrency currency goals;

Although the report does not mention any specific stablecoin project names, these types have included all stablecoins in the market, including Libra, USDT, WBTC, etc.

Pros and cons of stablecoin and supervision

In the summary section of the report, the International Organization of Securities Commissions (IOSCO) stated:

"The widely adopted global stablecoins have huge potential. They can create benefits for market participants including consumers and investors, but they can also exacerbate existing risks in financial markets and create new ones. In the long run Looking at it, the stablecoin proposal can replicate existing financial products and services, and use the stablecoin ecosystem as a core part of a new payment medium or market infrastructure.

The report addresses risks in a range of areas including consumer protection, market integrity, transparency, conflicts of interest, financial crime, systemic impact and economic impact. The use of stablecoins in financial services may lead to major changes in the way financial markets operate, and therefore may create risks, which require stablecoin participants to manage and require careful consideration by regulators and standard setters.

Given the possible cross-border and cross-agency impact of existing and new stablecoin structures, the International Organization of Securities Commissions and its members intend to adopt a globally coordinated approach when necessary .

The IOSCO stands ready to work with other international agencies and standard setters to maintain a consistent understanding of stablecoin proposals and risks. The International Organization of Securities Commissions (IOSCO) will seek to provide a venue for regulators to discuss issues related to the regulation of the stablecoin ecosystem that is widely used globally. "