In recent years, the rapid development of stablecoins has attracted the attention of regulatory authorities in various countries. Stablecoins, as a type of cryptocurrency pegged to fiat currency or other assets, have the characteristic of price stability and have been widely used in areas such as cross-border payments and DeFi. Particularly in the current cycle, the performance of RWA has been impressive, with both traditional financial institutions (such as BlackRock) and web 3 institutions/organizations (such as Sky (formerly Maker DAO)) entering the market, and more and more investors are also paying attention to this track, gradually forming a fluctuating upward trend.
Source:
https://defillama.com/stablecoins
"No rules, no order", and as a result, governments and international organizations around the world have also begun to introduce policies to regulate stablecoins.
United States (North America)
The United States is one of the major markets for stablecoin development, and the regulatory policies are also relatively complex. The U.S. stablecoin regulatory framework is mainly implemented by multiple agencies, including the Department of the Treasury, the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC).
For some stablecoins, the SEC may consider them to have securities attributes and require compliance with the relevant provisions of the Securities Act. The Office of the Comptroller of the Currency (OCC), a bureau of the Department of the Treasury, has proposed allowing national banks and federal savings associations to provide services to stablecoin issuers, but they must comply with anti-money laundering and compliance requirements. Recently, the U.S. Congress is discussing legislative proposals such as the Stablecoin Transparency Act, in an attempt to establish a unified regulatory framework for stablecoins. After the election of the "crypto president" Trump, although policies have not yet been implemented, crypto regulation seems to be generally improving.
European Union (Europe)
The EU's stablecoin regulation is mainly based on the Regulation on Markets in Crypto-Assets (MiCA).
MiCA classifies stablecoins into asset-referenced tokens (ARTs) and e-money tokens (EMTs). E-money tokens (EMTs) are tokens pegged to a single fiat currency, such as stablecoins pegged to the euro or the U.S. dollar. Asset-referenced tokens (ARTs) are tokens pegged to certain assets, such as fiat currencies, commodities, or cryptocurrencies. MiCA has developed corresponding regulatory requirements for each. Entities issuing stablecoins need to obtain a license from an EU member state and meet requirements such as capital reserves and transparency disclosures.
Hong Kong (Asia)
On July 17, 2024, the Hong Kong Monetary Authority (HKMA) and the Financial Services and the Treasury Bureau jointly issued a consultation summary, introducing the key elements of the upcoming stablecoin regulatory regime. According to this regime, companies wishing to issue or promote fiat-linked stablecoins to the Hong Kong public will need to obtain a license from the HKMA. This regulatory framework includes requirements for reserve asset management, corporate governance, risk control, information disclosure, and anti-money laundering and counter-terrorist financing.
Source link:
https://www.hkma.gov.hk/gb_chi/news-and-media/press-releases/2024/07/20240717-3/?utm_source=chatgpt.com
In addition, the HKMA has launched a "sandbox" program for stablecoin issuers to exchange views on the proposed regulatory requirements. The list of the first batch of participants was announced on July 18, 2024, including JD Coin Chain Technology (Hong Kong) Limited, Circle Innovation Technology Limited, and a consortium consisting of Standard Chartered Bank (Hong Kong) Limited, Animoca Brands Limited, and PCCW Limited.
Source link:
https://www.hkma.gov.hk/gb_chi/key-functions/international-financial-centre/stablecoin-issuers/?utm_source=chatgpt.com
Recently, on December 6, 2024, the government published the Stablecoin Bill in the Gazette, aiming to introduce a regulatory regime for fiat stablecoin issuers in Hong Kong to improve the regulatory framework for virtual asset activities.
Singapore (Asia)
According to Singapore's Payment Services Act, stablecoins are considered a type of digital payment token, and their issuance and circulation require a license from the Monetary Authority of Singapore (MAS). MAS provides a regulatory sandbox for startups to test stablecoin-related business models.
Japan (Asia)
In June 2022, Japan amended the Payment Services Act (PSA) to establish a regulatory framework for the issuance and trading of stablecoins. Under the revised PSA, stablecoins fully backed by fiat currency are defined as "Electronic Payment Instruments" (EPIs) that can be used to pay for goods and services. There are specific requirements for the issuing institutions, namely: only three types of institutions can issue stablecoins - banks, money transfer service providers, and trust companies. Institutions wishing to engage in stablecoin-related business must first register as Electronic Payment Instrument Service Providers (EPISPs) to obtain the necessary licenses to provide the services.
Brazil (South America)
In October 2024, BCB President Roberto Campos Neto stated that they plan to regulate stablecoins and asset tokenization in 2025. In November 2024, BCB proposed a regulatory proposal to prohibit users from withdrawing stablecoins from centralized exchanges to self-custody wallets. However, it is reported that in December, the BCB's Financial System Deputy Superintendent stated that the central bank may revoke the ban if key issues such as improving transaction transparency can be addressed.
Conclusion
In addition, the BRICS countries are also considering using cryptocurrencies as a settlement method for cross-border financing. Overall, whether it is setting up regulatory sandboxes for crypto companies or defining categories based on the different characteristics of stablecoins, more and more stablecoin regulatory policies will be introduced in the future. And cross-border payments seem to be one of the most widespread application scenarios for stablecoins.
