Odogwu Herself
@idaraimeh
I’m excited to share @swisstronik-‘s take on Compliance around the world with the latest batch of policy: FSB warns about stablecoins in emerging markets FINMA proposes new guidelines for stablecoin issuers US House passes Financial Technology Protection Act
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Odogwu Herself
@idaraimeh
FSB warns about stablecoins in emerging markets The Financial Stability Board (FSB) has released a report warning about the risks and regulatory challenges associated with the increasing use of global stablecoins in emerging markets and developing economies. The report emphasizes the need for robust regulatory frameworks, cross-border regulatory cooperation, and local capacity building to manage and supervise stablecoin activities and protect financial stability in these regions.
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Odogwu Herself
@idaraimeh
Despite the risks, stablecoins are seen as a potential alternative to local fiat currencies in these markets, driven by factors such as limited banking access, the need for efficient remittance services, and the desire to hedge against local currency instability. @swisstronik-‘s Take: The FSB’s warning about the risks of global stablecoins in emerging markets is something to take seriously. While stablecoins offer great potential, especially in regions with limited banking access, robust regulations are crucial.
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Odogwu Herself
@idaraimeh
FINMA proposes new guidelines for stablecoin issuers The Swiss Financial Market Supervisory Authority (FINMA) has proposed new guidelines for stablecoin issuers to increase regulatory oversight and reduce financial risks. They want to classify stablecoin issuers as financial intermediaries and subject them to the same Anti-Money Laundering (AML) obligations as traditional financial institutions.
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Odogwu Herself
@idaraimeh
FINMA also explained how stablecoin issuers can operate without a banking license if they meet certain conditions, which includes having a bank guarantee in case of default. While these measures enhance depositor protection, they do not fully match the security of a banking license. @swisstronik-‘s Take: FINMA’s new guidelines for stablecoin issuers are stepping up the game for regulatory oversight. Measures that increase security and transparency while fostering innovation should be welcomed by everyone.
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Odogwu Herself
@idaraimeh
US House passes Financial Technology Protection Act The United States House of Representatives recently passed the Financial Technology Protection Act, which aims to address the illicit use of digital assets. The bill, introduced by Representatives Zach Nunn and Jim Himes, seeks to establish a working group to research how rogue nations and criminals could use crypto to evade sanctions. The working group will include members from federal agencies and industry leaders from private firms. This bill is part of a series of crypto-related legislation being considered, and it is expected to be reviewed by the Senate. @swisstronik-‘s Take: This is a strong step towards addressing the misuse of digital assets. A proactive approach is what we need to ensure the crypto space is safe and secure and make it more trustworthy for all users.
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Odogwu Herself
@idaraimeh
@lilita @crisssper @ette @chideradike @edirin What do you guys think about @swisstronik-‘s take on Compliance?
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