According to Odaily Planet Daily, a report released by the Financial Stability Institute (FSI) under the Bank for International Settlements (BIS) warned that countries need to make the regulatory frameworks of stablecoins consistent with each other. FSI was jointly created by the Bank for International Settlements and the Basel Committee on Banking Supervision, and its mission is to assist regulators around the world in strengthening their financial systems.
The FSI report states that jurisdictions have different definitions and classifications of stablecoins, which may pose risks to financial stability. There are also differences in the disclosure requirements for the reserve assets that stablecoin issuers hold to maintain the value of the cryptocurrency relative to the reference currency. A consistent regulatory framework and its global implementation are essential to address stablecoin risks, prevent regulatory arbitrage, and ensure a level playing field in the digital asset ecosystem.
