Global finance regulators have tightened the controls over the crypto sector. The regulators have adviced major stablecoins to follow with the safeguards as traditional forms of payments.
The existing rules of the payment sector is applied only to the large stablecoins, marking a major step forward in applying “same risk, same regulation”. IOSCO, which regulates the world’s securities and futures markets said that they have formally accepted the proposals put out to public consultation in October.
The recent changes made in the cryptoasset market has brought potential risks in the market. Earlier, TerraUSD stablecoin also falled this year, while crypto lending institution Voyager Digital has filed for bankruptcy this month. Bitcoin cryptocurrency also went down to 70 percent since November.
The G20, which is the Global watchdog, with the European Union this month has approved a law to manage and regulate the cryptomarkets, including stablecoins.
Stablecoins are cryptocurrencies where the prices are fixed to a cryptocurrency, other currency or to exchange-traded commodities.
