Page 85 - Azerbaijan State University of Economics

Kh.R.Taghiyev , U.F.Yusifov, M.R.Taghiyev: Stablecoıns and Theır Specıfıc Features

Establishing a secure and clear regulatory environment for stablecoins to operate
within the UK would also lay a clear foundation for sustainable innovation and
allow consumers to safely realise the benefits they may offer.

Her Majesty’s Treasury propose to bring systemic stablecoins into the Bank’s
regulatory remit, in line with its responsibilities for systemic payments systems
under the Banking Act of 2009. This is outlined in HMT’s recent consultation on the
UK regulatory approach to cryptoassets and stablecoin. The legislative changes to be
made by Parliament in order to implement the outcomes of this consultation are vital
to ensure the Bank and other UK authorities have the necessary remit and powers to
fully regulate stablecoins both in line with the risks they pose and under the
principle of ‘same risk – same regulatory outcome’.

China's central bank warned that digital coins, a stable currency, pose a serious risk
to global financial systems, and that China's digital yuan has no problems. Officials
of the People's Bank of China say digital currencies issued by private entities,
including stablecoins, have been used as speculative tools threatening financial
security and social stability as payment for illegal activities and money laundering.
Officials say the Chinese government has already taken some steps to limit the
expansion of global stabilecoins in the country.

Stablecoins are also used in the United States. Examples include USD coin and
Tether. However, as their activities are not regulated by any legislation, the US
government, especially financial regulators, have stated that they are preparing to
take appropriate steps to prevent the risks that the use of stablecoins could pose to
the financial system. But before all these steps, they would urge Congress to pass
comprehensive legislation that would control the form of the digital currency.Bank
of Thailand is taking steps to legalize illegal foreign currency-backed stablecoins,
asset-backed stablecoins and algorithmic stablecoins.

The BOT oversees risks associated with e-Money, such as settlement, money
laundering cybersecurity and consumer protection risks. Therefore, those wishing to
provide services involving Baht-backed stablecoins are required to consult with the
BOT for consideration before beginning any operations. This policy is in line with
the regulatory guidelines in many countries, such as the United Kingdom,
Singapore, and Japan.

As for other forms of stablecoins including foreign currency-backed stablecoins,
asset-backed stablecoins, and algorithmic stablecoins that are not illegal, the BOT is
open to receive comments and feedback before considering regulatory guidelines as
appropriate.

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