The financial stability Board (FSB), created by the G20 countries, presented General recommendations for regulating stablecoins.
FSB participants believe that the world’s leading economies need to carefully work out their legal system and regulatory requirements for stable cryptocurrencies. This is necessary in order to prevent stablecoins from harming the international financial system. According to the FSB, stablecoins must meet the same requirements that are met by other organizations that carry similar risks, regardless of the technologies used.
Stable cryptocurrencies must be subject to the rules that apply in the traditional financial industry. We are talking about payment requirements and verification of identity of customers. This will at least partially eliminate the risks. However, the control of stablecoins used by VB for making international payments is complicated by differences in financial regulation in different countries.
The FSB believes that States need to show flexibility and develop a common standard for regulating digital currencies so that their issuers cannot “move” from one jurisdiction to another. If necessary, the competent authorities should specify the regulation and eliminate possible gaps in the domestic legal system in order to effectively minimize the risks posed by international stablecoins.
In addition, the FSB suggests that operators of stable cryptocurrencies must take measures for effective risk management and stable operation of their system. In particular, they are required to provide protection against cyber attacks, counter money laundering and the financing of terrorism.
In February, the new FSB Chairman, Randal Quarles, said that crypto assets can challenge any financial structure, so the G20 member countries called for the active implementation of FATF standards for cryptocurrencies.