StartupsBiz’s Post

The European Banking Authority (EBA) has released a final draft of regulatory technical standards for stablecoin issuers to handle holder complaints. The standards, developed in partnership with the European Securities and Markets Authority (ESMA), require issuers to publish complaint handling procedures and have a standardized process for customers to submit complaints. The EBA received public comments on the draft guidance in July 2023 and made targeted amendments, including new provisions relating to data protection and updates to complaint forms. The final draft will be submitted to the European Commission for endorsement by the end of June 2024 before heading to the European Parliament and the Council for approval. This development is part of the recently-implemented Markets in Crypto-Assets Regulation (#MiCA) in the European Union and reflects a growing trend towards regulating #stablecoins and other cryptocurrencies globally. https://lnkd.in/eJEVqpsZ

interview - "Europe’s forthcoming regulatory framework will introduce banking concerns for stablecoin issuers that could threaten the stability of the broader crypto space, according to Paulo Ardoino. The Markets in Crypto-Assets Regulation (MiCA) is the first comprehensive regulatory framework for the crypto industry and is set to go into full effect on Dec. 30. Under MiCA, stablecoin issuers will be required to hold at least 60% of reserve assets in European banks. Considering that banks can loan up to 90% of their reserves, this may introduce “systemic risks” for stablecoin issuers, according to Ardoino, CEO of Tether — the issuer of the world’s largest stablecoin, USDt USDT, which recently surpassed $120 billion in market capitalization. Ardoino shared his concerns with Cointelegraph during an interview at Plan B Lugano in Switzerland"... Cointelegraph

Further insights into the HKMA's plans to regulate fiat-referenced stablecoin issuers, which include a broad set of new supervisory powers. With thanks to my colleagues Stephanie Chan, Felicity Wong and Adrian Tang.

Since the inception of cryptocurrencies, they have been a disruptive force in the financial industry, reshaping and challenging the banking systems and how individuals interact with money. Read the article https://lnkd.in/d_fHhV9u

Proposed regulation aims to bring regulatory clarity to the #stablecoin sector. We can learn from similarities between modern stablecoins and the USA's “free banking” period of the 1800’s. https://lnkd.in/ertQaFRY

Yet another great example of why banks such as Custodia Bank should be granted a Federal Reserve master account. CBIT provides an important 24/7 token payment system for digital assets. As the market for tokenized assets continues to grow in popularity and size (i.e. BlackRock and Franklin Templeton), it will become increasingly important to allow multiple banks to balance out potential risks and permit the formation of tokenized payment network consortiums such as USDF. Therefore it is important that regulators set clear guidelines on tokenized payment systems so that other banks feel comfortable entering the space. Without regulatory support, it will likely stifle innovation. #digitalassets #banking #tokenizedRWA #DLT https://lnkd.in/eKbgmaBj

On July 26, 2024, FINMA published Guidance 06/2024 «Stablecoins: risks and challenges for issuers of stablecoins and banks providing guarantees» (Guidance 06/2024). This guideline has created some confusion and reactions, going as far as saying that FINMA's attitude make it impossible to issue stablecoins from Switzerland, because there is always a need for a banking license. Switzerland has a rule: If there is a duty of redemption for a financial service provider, the banking act applies. What FINMA has done with the guidelines is just an illustration of the application of existing laws. This rule does not fit the new forms of payment services. In order to have a safe basis for stablecoins, Switzerland must amend the legislation, get rid of the ill designed fintech license (art. 1b Banking Act) which is still based on the duty-to-redeem-approach and define a new payment service provider license in the financial institution act (what the European Union has done a long time ago, see Payment Service Directive), e.g. enabling collateral in the form of book money as underlying of stablecoins, without triggering a duty of redemption. I have analysed the legal situation in my contribution on "Stablecoins" in AJP 8 /2023 (see below). The crypto community should exercise pressure on the Federal Administration to speed up the work for a replacement of the Fintech License (art. 1b Banking Act).

"As mandated by the recently-implemented Markets in Crypto-Assets Regulation (MiCA), the European Union has taken another step toward establishing regulations around stablecoins.  The European Banking Authority (EBA) on Wednesday released a final draft of regulatory technical standards in partnership with the European Securities and Markets Authority (ESMA), which oversees markets in the EU. The standards establish protocols for stablecoin issuers when addressing complaints.  The standards ask issuers of asset-referenced tokens — known as stablecoins — to publish how they handle complaints and to have a standardized process for customers and users to submit them. " #crypto #cryptoassets #digitalassets #stablecoins #mica #European Banking Authority (EBA) European Securities and Markets Authority (ESMA) #eu #cryptoregulation

"The implementation of digital asset banking rules for G10 countries has been postponed by a year following feedback from the market.The rules were devised by the Bank for International Settlements – BIS (BIS) and its Basel Committee on Banking Supervision as a way to develop a prudential standard for firms' exposure to crypto or digital assets.This standard, which was finalised in 2022, was set to be put into practice in January 2025 but will instead be implemented the following January." #crypto #cryptoassets #digitlassets #cryptoregulation https://lnkd.in/eTBhykc2

German Banks Push For Bankless Payments, What Is The Catch? "The committee, representing more than 1,700 banks, published the report on the Commercial Bank Money Token, acknowledging that “traditional forms of money and payment systems have reached their limit.” The report highlights the growing shift toward peer-to-peer and machine-to-machine payment transactions, which makes bank intermediation less relevant and, at times, a hindrance. Instead of relinquishing control, banks are experimenting with an "account-based" system that mirrors existing deposits. This approach allows them to capitalize on blockchain’s efficiencies while maintaining centralized control over access and preserving their deposit-based funding model." https://lnkd.in/ggNHpB8G