Global regulators insist that stablecoin must comply with the same protectionist rules as other traditional forms of payment.
The matter was highlighted by the global body for securities regulators, IOSCO and the International Settlement Bank (BIS) committee in a statement on Wednesday on regulation of the vulnerable crypto sector.
It is understood that the average regulator unanimously adopted the guidance proposal submitted to a public consultation last October.
As an enlightenment, the guide states that existing payments sector rules should be applied to stablecoin in ensuring equal robustness and strength in all aspects systemically.
Comment IOSCO Chairman and Chief Executive Officer (CEO) of Hong Kong securities regulator Ashley Alder said the guide covered risk management, governance and transparency standards.
It was also backed by Jon Cunliffe, chairman of the BIS committee and deputy governor of the Bank of England (BOE) who said the uncertainty of the crypto market urged regulatory requirements on cryptoassets including stablecoin.
The public still remembers the TerraUSD collapse incident earlier this year in addition to the case of crypto lender, Voyager Digital which filed for bankruptcy.
The situation was further exacerbated by the value of Bitcoin (BTC) which fell almost 70% from its high of $ 69,000 in November.
So it is no wonder why global regulators are actively seeking the approval of the Financial Stability Board and the European Union (EU) to approve legislation on crypto and stablecoin.
