Circle: Regulatory differences among countries may impair the global interoperability of digital currencies, suggesting the adoption of unified standards worldwide

ChainCatcher news, according to Crowdfund Insider, the stablecoin issuer Circle has submitted feedback on the Financial Stability Board (FSB) crypto asset regulatory framework peer review. Circle emphasizes that regulatory differences among countries may impair the global interoperability of digital currencies and suggests adopting a unified global standard.

As the issuer of USDC and EURC stablecoins, Circle points out that the main challenges currently faced include: local reserve management requirements in various regions may lead to fragmented liquidity; overly strict redemption time limits may exacerbate liquidity risks under market pressure; and inconsistent anti-money laundering (AML) standards across different jurisdictions increase compliance costs.

Circle calls on regulators to adopt a risk-based regulatory approach that ensures financial stability while maintaining the global interoperability and operational efficiency of stablecoins. The company believes that a clear and consistent regulatory framework can support innovation without compromising financial stability.