Bank Of Italy Seeks Rules For Multi-Issuance Stablecoins, Australia Offers Exemptions

On Thursday, a senior Bank of Italy official urged uniform standards to protect users as stablecoins position to go mainstream toward global traditional finance markets. Australia has also granted regulatory relief to stablecoin intermediaries, exempting them from holding separate financial services licenses when distributing these assets.

Uniform Standards In Stablecoin Regulation

During a speech at an international central bank conference on payments, Deputy Governor Chiara Scotti highlighted the importance of clarity in regulations, particularly concerning stablecoins issued by entities in different jurisdictions. 

She urged the European Commission to provide guidance on whether stablecoins issued by licensed European Union (Eu) firms could be considered interchangeable with those from non-EU counterparts under a multi-issuance model.

Scotti’s remarks come amid ongoing discussions about the regulatory framework for stablecoins in the European Union. She noted that while the EU has established regulations through the Markets in Crypto-Assets Regulation (MiCAR), concerns remain regarding the financial stability risks posed by cross-border issuance. 

She believes that this model could lead to complications, especially if non-EU issuers face redemption requests from EU holders, potentially creating a mismatch between obligations and reserves.

The Deputy Governor pointed out that although a multi-issuance model could enhance global liquidity and scalability, it also introduces significant legal and operational challenges. 

In her view, it is crucial to restrict stablecoin issuance to jurisdictions that uphold equivalent regulatory standards in consumer protection, transparency, and crisis management.

New Class Relief From ASIC 

In a related development, Australia has taken steps to foster growth in its digital assets sector. The Australian Securities and Investments Commission (ASIC) recently announced class relief for intermediaries involved in the secondary distribution of stablecoins issued by licensed Australian financial services providers. 

According to the regulator’s statement issued on Thursday as well, this regulatory relief exempts these intermediaries from the need to obtain separate licenses when distributing eligible stablecoins, streamlining the process while ensuring that consumer protections remain in place. 

ASIC’s initiative is aimed at facilitating innovation in digital asset markets. However, intermediaries benefiting from this exemption are required to provide clients with product disclosure statements for the stablecoins they distribute, reinforcing the importance of transparency. The statement further reads:

ASIC is committed to supporting responsible innovation in the rapidly evolving digital assets space, while ensuring important consumer protections are in place by having eligible stablecoins issued under an AFS licence. The relief will take effect once registered on the Federal Registration of Legislation.

Featured image from DALL-E, chart from TradingView.com