FSI under the Bank for International Settlements: Countries need to ensure consistency in stablecoin regulatory approaches

ChainCatcher news, according to CoinDesk, a report released by the Financial Stability Institute (FSI) of the Bank for International Settlements (BIS) warns that countries need to harmonize their regulatory frameworks for stablecoins. The FSI was jointly established by the Bank for International Settlements and the Basel Committee on Banking Supervision, with the mission to assist regulatory authorities around the world in strengthening their financial systems.

The FSI report states that different jurisdictions have varying definitions and classifications of stablecoins, which may pose risks to financial stability. There are also discrepancies in the disclosure requirements for reserve assets that stablecoin issuers hold to maintain the value of cryptocurrencies relative to their reference currencies. A consistent regulatory framework and its global implementation are crucial for addressing stablecoin risks, preventing regulatory arbitrage, and ensuring a level playing field in the digital asset ecosystem.