12 September, 2019
The Swiss financial watchdog FINMA has released extended its ICO guidelines with the rules for stablecoins. Extra attention was also paid to Facebook's crypto project Libra. FINMA unveiled the report on its website on September 11.
The report reads:
"Among projects based on blockchain technology, FINMA has observed an increase in the number of projects to create so-called ‘stable coins’ since mid-2018..."
The regulator confirmed in the document the fact that it had asked the Libra Association to revise its business operations to comply with the Swiss legal framework.It was noted that Libra cryptocurrency requires payment system license following the Law on financial market infrastructure. In particular, the license shows that the companies take all measures to manage risks in terms of cybersecurity and AML.
"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," as it was stated in the document.
The new rules will cover "capital allocation (for credit, market and operational risks), risk concentration and liquidity".
At the same time, stablecoins are subject to existing blockchain token regulation, though can get specific rules depending on the assets used to back coins (currency, commodities, real estate).