In 2022 stablecoins have proved to be the last resort for crypto lawyers investors looking for a safe harbour. In times of high volatility and drastic changes. There is an increased need to secure your money and protect it from devaluation. Although in real life the people’s trust is vested in the U.S. dollar. In the digital realm, such security is vested into USDT, BUSD and other stablecoins in U.S crypto lawyers.
The market of BVI crypto company registration and stablecoins has entered a phase of uncertainty. However, recent statistic shows that the total supply of stablecoins was heading toward 200 billion before the war in Ukraine and LUNA/UST collapse. Indeed, the top cryptocurrency lawyers market could hardly become so popular. Attractive for investors without the stability offered by stablecoins. Thus, successful development is something well foreseen.
But is there any threat or potential risks to this field except of course warrior dictators and world economic crisis? The answer is yes. The new potential risk is regulation that is slowly approaching.
Usually taking a proactive position, On 28 October 2021, the Financial Action Task Force (FATF) released updated guidance for a risk-based approach for virtual assets and virtual asset service providers. With a focus on stablecoins, the guidance clarifies the definitions of virtual assets (VAs). Virtual asset service providers (VASPs) and explains how FATF standards apply to stablecoins.
In early 2022 US Senate Committee on Banking, House, and Urban Affairs concluded that while. Stablecoins have certain benefits in terms of cost reduction and cross-border transfers. They are operating without clear regulation and therefore could carry a significant risk. But the most important outcome of that discussion was a recommendation comprising. Three options under which stable coin issuers may operate. A traditional bank charter, a special purpose banking charter designed for stablecoin issuers, or registration as a money transmitter.
At the same time the British American Business Transatlantic Finance Forum’s Executive Roundtable in January 2022. Where pretty much the same views was share by the Acting Comptroller of the Currency – Michael J. Hsu. Mr Hsu was advocating the “strong federal regulation” that in his mind shall make a healthier economy and foster a solid foundation for future development.
Having considered the latest developments and in the light of the recent UST collapse which caused billions of losses to the investors there could be only one conclusion – the regulation is coming, and it is going to be tough.
Do you consider setting up a stable coin business? Want to prepare yourself at best for future challenges?
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