Analysis: FSB's regulatory recommendations on global stablecoins may have significant impact

According to previous reports, the G20 Financial Stability Board (FSB) made 10 recommendations, proposing the establishment of global general rules to avoid destabilizing the currency to undermine financial stability. The FSB's document elaborates on the regulatory and supervisory challenges that global stablecoins may raise, and proposes to strengthen cross-border cooperation. The stable currencies listed in the report include USDT, USDC, TUSD, PAX, DAI, etc. The FSB mentioned that “the authorities should be able to mitigate the risks associated with certain or specific stablecoins that do not comply with applicable regulations, regulatory and supervisory requirements within their jurisdiction or prohibit the use of these stablecoins.” Relevant authorities should use the necessary power to supervise , Control and even prohibit any and all activities related to operations, issuance, management, provision of custody, and transactions or exchanges related to global stablecoins. Crypto Briefing article stated that, given the market's heavy dependence on stablecoins, this document is only advisory in nature, and if certain stablecoins are banned, it may bring disaster to the Bitcoin and cryptocurrency markets. According to the FSB's recommendations, both decentralized and centralized stablecoins will be reviewed, and it is implied that only licensed stablecoins should be allowed to operate. The FSB proposes that the authorities should be able to require the so-called Global Stable Currency (GSC) program to be managed in a manner that facilitates effective supervision and supervision, including a ban on completely decentralized systems. It may be terrible for stablecoin businesses such as Tether because the cost of complying with relevant regulations is huge. The DeFI field may also be affected.