3 Key Takeaways From Switzerland’s New Stablecoin Guidelines
Marie Huillet's original article for cointelegraph.com reduced by 40%
In a news release published on Sept. 11, FINMA takes note of the steadily proliferating issuance of stablecoins since mid-2018, as well as confirming that the Geneva-based Libra Association had sought an assessment by FINMA for its Facebook's stablecoin project under Swiss law. FINMA confirms the Libra Association has sought an assessmentFacebook's proposed Libra project in its current form, FINMA notes, would require a payment system license on the basis of Switzerland's Financial Market Infrastructure Act.
Three key takeaways from FINMA's approach to Libra. "Due to the issuance of Libra payment tokens, the services planned by the Libra project would clearly go beyond those of a pure payment system and therefore be subject to such additional requirements." Such additional requirements would apply to the Libra Association's proposed capital allocation for credit, market and operational risks, its risk concentration, liquidity and management of the Libra Reserve. A last important point from FINMA is that the international scope of Libra requires an internationally coordinated approach in order to establish the requirements for its reserve management, governance and AML system.
Cointelegraph reported earlier today on the context of the LIbra Association's appeal to FINMA for an assessment of the proposed stablecoin network.
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