Updates

IOSCO statement on the study of emerging global stablecoin proposals

Alexia Pollacco 04 Dec 2019

The Board of the International Organization of Securities Commissions (IOSCO) published a statement on the 4th of November outlining the studies being undertaken with regards to global stablecoin proposals. The IOSCO is an international forum which promotes internationally recognized standards for securities regulation, working closely with the G20. The Board is the governing body of the organization made up of 34 securities regulators.

The Board met to discuss the work being undertaken by the IOSCO FinTech Network, which was established in May 2018 to facilitate work pertaining to Fintech developments and which is chaired by the UK’s Financial Conduct Authority (FCA). The IOSCO FinTech Network provided the Board with an assessment of whether IOSCO Principles and Standards and national regulatory regimes could be applicable to global stablecoins, which are stablecoins with potential global adoption. The study concluded that stablecoins may have features of traditional regulated securities, thus a case-by-case assessment would be required to determine whether such regulation would be applicable. This assessment would be based on information regarding the proposed stablecoin project such as participants’ potential rights and obligations.

Furthermore, the Board expressed its agreement with the G20’s press release that global stablecoins might have international ramifications with regards to regulation and public policy. Thus, cooperation between international key players is encouraged in order to identify and address the risks posed by stablecoins. Future wise, the IOSCO will also be collaborating with the Financial Stability Board’s work and continuing its assessments of the impact of global stablecoins. 

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