WFE calls for common regulatory classification of stablecoins

Source: LeapRate 2020-07-23

The World Federation of Exchanges (WFE), the global industry group for exchanges and CCPs, began developing common taxonomy for stablecoins which will also cover crypto-assets more broadly. The development of taxonomy will create common regulatory classifications of the sablecoins in response to their recent growth before they fragment any further.

The WFE asked the Financial Stability Board to create and take up global taxonomy to help drive a common understanding of whether a global stablecoin (GSC) or crypto-asset fits a certain classification or definition.

The classification would reduce the difference between jurisdictions and remove regulatory dissonance. With a periodic review of the taxonomy it an be ensured that that forms of GSC and crypto-assets can be incorporated and regulated accordingly.

WFE called FSB to consider the following fields to further work on:

Developing classifications through a taxonomy for all GSC and crypto-assets
Application of the recommendations to all crypto-assets
Applying the cross-border co-operation recommendations and information-sharing requirements to the supervision of all those trading GSC/crypto-assets

WFE has expressed its belief that regulators should cooperate to share information on global stablecoing and crypto-assets and issues on the trading platforms. To address customer protection and market integrity, a formalised co-ordinated approaches to enforcement and oversight in general need to be developed.

Nandini Sukumar, Chief Executive Officer of the WFE said:

Nandini SukumarSource: world-exchanges.org

We support the overall ambition of seeking to address fragmented regulatory approaches by moving to an outcomes focus, applying the ‘same business, same risk, same rules’ principle; and building on the need for cross-border co-operation in the supervision of global stablecoin, both for wholesale and retail.

Stablecoins

WFE

WFE calls for common regulatory classification of stablecoins

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