Global: BIS Releases Recommendations for Global Stablecoin Regulation

The Bank for International Settlements (BIS) has issued a set of recommendations aimed at regulating global stablecoins (GSCs) due to the potential risks they pose to domestic and international financial stability.

Recognizing the extensive adoption and global reach of GSCs, the BIS underscores the importance of robust regulation and supervision to mitigate associated risks. The recommendations encourage jurisdictions worldwide to prepare for overseeing GSCs, with a particular emphasis on fostering cross-border cooperation and information sharing.

The BIS also advocates for the establishment of risk management frameworks addressing key areas such as operational resilience, cybersecurity, anti-money laundering measures, and compliance with relevant laws and regulations.

Furthermore, BIS emphasizes the significance of managing GSC risks through considerations like data storage, access to data, redemption rights, and prudential requirements. While acknowledging the potential of stablecoins to enhance financial service efficiency, the BIS urges caution regarding the financial stability risks they may introduce.