{"id":552633,"date":"2023-02-16T14:49:28","date_gmt":"2023-02-16T11:49:28","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bis-funded-regulator-to-probe-defi-entry-points-like-stablecoins\/"},"modified":"2023-02-16T14:49:28","modified_gmt":"2023-02-16T11:49:28","slug":"bis-funded-regulator-to-probe-defi-entry-points-like-stablecoins","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bis-funded-regulator-to-probe-defi-entry-points-like-stablecoins\/","title":{"rendered":"# BIS-funded regulator to probe DeFi entry points like stablecoins"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a25e81a91b54\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a25e81a91b54\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bis-funded-regulator-to-probe-defi-entry-points-like-stablecoins\/#%E2%80%9D_BIS-funded_regulator_to_probe_DeFi_entry_points_like_stablecoins_%E2%80%9C\" >&#8221; BIS-funded regulator to probe DeFi entry points like stablecoins &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_BIS-funded_regulator_to_probe_DeFi_entry_points_like_stablecoins_%E2%80%9C\"><\/span>&#8221; BIS-funded regulator to probe DeFi entry points like stablecoins &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-71a7a826>The Financial Stability Board (FSB), the financial regulator funded by the Bank for International Settlements (BIS), is pushing international regulations for decentralized finance (DeFi).<\/p>\n<p>The FSB on Feb. 16 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.fsb.org\/wp-content\/uploads\/P160223.pdf\">issued<\/a> a report on the financial stability risks of DeFi, highlighting major vulnerabilities, transmission channels and the evolution of DeFi.<\/p>\n<p>Despite providing many \u201cnovel\u201d services, DeFi \u201cdoes not differ substantially\u201d from traditional finance (TradFi) in its functions, the authority said in the report. By trying to replicate some functions of TradFi, DeFi increases potential vulnerabilities due to the use of novel technologies, the high degree of ecosystem interlinkages and the lack of regulation or compliance, the FSB argued.<\/p>\n<p>Moreover, the actual degree of decentralization in DeFi systems \u201coften deviates substantially\u201d from the stated claims of the founding originators, the authority claimed.<\/p>\n<p>In order to prevent the development of DeFi-associated financial stability risks, the FSB is cooperating with global standard-setting bodies (SSB) to assess DeFi regulations across multiple jurisdictions.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/c5ea2d77-9a09-4fa2-885e-a7306585da9d.png\"><figcaption style=\"text-align: center;\"><em>Monthly DeFi unique addresses and number of DeFi <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>s. Source: FSB<\/em><\/figcaption><\/figure>\n<p>In this regard, a key element to consider would be the entry points of DeFi users, including stablecoins and centralized crypto asset platforms, the FSB said, adding:<\/p>\n<blockquote><p>\u201cThe FSB may consider whether subjecting these crypto-asset types and entities to additional prudential and investor protection requirements, or stepping up the enforcement of existing requirements, could reduce the risks inherent in closer interconnections.\u201d<\/p><\/blockquote>\n<p>The FSB emphasized that both asset-backed stablecoins like Tether (USDT) and algorithmic stablecoins like Dai (DAI) play an important role within the DeFi ecosystem through their use in purchasing, settling, trading, lending and borrowing other crypto-assets. The rise of stablecoins would also likely increase the adoption of DeFi solutions by retail and corporate users as well as facilitate the adoption of crypto assets as a means of payment, the regulator suggested.<\/p>\n<p>\u201cWith respect to liquidity and maturity mismatch issues, stablecoins are a crucial area of focus,\u201d the FSB wrote, stressing the need to understand the peculiarities of different stablecoins in order to monitor the risk they pose to the crypto industry, including DeFi ecosystems.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Circle squashes rumors of planned SEC enforcement action<\/em><\/strong><\/p>\n<p>The <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> comes amid the increasing scrutiny of some major stablecoins by global regulators. On Feb. 13, blockchain infrastructure platform Paxos Trust Company announced that it will stop issuing Binance USD (BUSD) stablecoins amid the ongoing probe by New York regulators. The New York Department of Financial Services ordered Paxos Trust to stop BUSD issuance, alleging that BUSD is an unregistered security.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/bis-funded-regulator-to-probe-defi-entry-points-like-stablecoins\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; BIS-funded regulator to probe DeFi entry points like stablecoins &#8220; The Financial Stability Board (FSB), the financial regulator funded by the Bank for International Settlements (BIS), is pushing international regulations for decentralized finance (DeFi). The FSB on Feb. 16 issued a report on the financial stability risks of DeFi, highlighting major vulnerabilities, transmission channels&#8230;<\/p>\n","protected":false},"author":1,"featured_media":552634,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/419c3be5-1851-46b0-a113-a67cc361c4bb.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75062,74863,74868,75493,70934,36041],"class_list":["post-552633","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bis","tag-cryptocurrencies","tag-defi","tag-stablecoin","tag-regulation","tag-tether"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/552633","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=552633"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/552633\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/552634"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=552633"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=552633"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=552633"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}