- The IOSCO believes that there are some existing rules which Libra could fall within.
- Benefits are seen of stablecoins, but also pose risks, according to the body.
Global securities watchdog IOSCO speaking on Facebook’s Libra, noting that existing securities rules could apply to “stablecoin” digital currency initiatives such as Facebook’s Libra project. It notes that this can be done to help realize its benefits, as policymakers examine whether new regulation is needed.
The watchdog, detailed that an assessment of stablecoins found they can potentially offer benefits as well as pose risks. IOSCO is made up of securities regulators from across the world, including the United States, Europe and Japan.
IOSCO chair Ashley Alde said
Our analysis has shown that so-called ‘stablecoins’ can include features that are typical of regulated securities.
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