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Stable Coins

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The Council of the EU and the European Commission have published a joint statement on stablecoins. As expected this states that no global “stablecoin” arrangement should operate in the EU until “the legal, regulatory and oversight challenges and risks have been adequately identified and addressed.” While the statement recognizes that “stablecoins” may present opportunities in terms of cheap and fast payments, for example, with cross-border payments, it lists a multitude of “challenges and risks”. These…

On September 11, 2019, the Swiss Financial Market Supervisory Authority (FINMA) has issued guidance on the regulatory treatment of stable coins. As a supplement to the previously issued ICO Guidelines, FINMA outlines how it treats stable coins under the Swiss regulatory framework. In this connection, FINMA also gives initial indications on the request for a regulatory assessment filed by the Geneva-based Libra Association, a high-profile cryptocurrency project orchestrated by Facebook Inc. There is no special…