Bank of England Handed New Legal Duty to Foster Stablecoin Innovation
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Bank of England set for new innovation mandate covering stablecoins
The UK plans to expand the Bank of England’s remit to support digital payments innovation, including stablecoins, while keeping financial stability first.
The Bank of Korea has released a regulatory proposal suggesting that personal stablecoin transactions exceeding $10,000 should be limited to transfers from verified wallets.
According to Mars Finance, the legal team of the Bank of Korea has published a research paper titled "Regulatory Scheme for Foreign Remittance Transactions Targeting Stablecoins," proposing regulatory recommendations for large-scale stablecoin transactions. The paper, referencing current South Korean foreign exchange control regulations, proposes constraints on stablecoin transfers exceeding $10,000 between individuals, requiring such transactions to be conducted only between officially certified wallets, along with a pre-reporting mechanism. The institution acknowledges that there are technical obstacles to fully controlling unregistered wallets, but due to anti-money laundering compliance requirements, it is necessary to strengthen restrictions on large-scale cross-border stablecoin fund flows. South Korean regulators have previously repeatedly stated the need to improve the monitoring system for cross-border crypto asset transactions using non-custodial wallets; this paper further refines and implements the regulatory approach.
The Reserve Bank of India reiterated its opposition to the legalization of cryptocurrencies to a parliamentary panel, favoring a containment-style regulatory approach.
According to Foresight News , citing the Economic Times, the Reserve Bank of India (RBI) reiterated its opposition to legalizing virtual digital assets (VDAs, including cryptocurrencies) to the Standing Committee on Finance of the Indian Parliament on Thursday, arguing that such assets pose a threat to emerging economies. This marks the first time the RBI has directly addressed the issue of cryptocurrencies to the committee, which was holding a meeting that day to discuss "Research on Virtual Digital Assets and Future Paths." RBI officials stated that virtual digital assets should not be granted legal status at this stage, arguing that such assets could be used for illicit activities such as terrorist financing and drug trafficking, and that regulating related offshore entities would be difficult. According to another report, the RBI favors a prohibitive containment strategy to ensure that banks and regulated financial institutions are protected from the risks associated with this asset class. The RBI also criticized stablecoins pegged to fiat currencies (such as the US dollar), arguing that they undermine national monetary sovereignty, and advocated that users switch to a central bank digital currency (CBDC) issued by the RBI itself for virtual asset transactions. Following the meeting, Committee Chairman Bhartruhari Mahtab told the media that the RBI opposes legalizing virtual digital assets in India. He also noted that compared to other digital assets, the RBI's own digital currency (e-rupee) is "not a thriving asset," currently boasting approximately 10 million users, representing only 0.42% of India's population, and struggling to gain traction despite the unified payment interface (UPI, which processes over 300 million transactions daily). The meeting also heard feedback from the Institute of Chartered Accountants of India (ICAI), which supports a comprehensive legal framework for virtual digital assets. The RBI also questioned long-held claims that India is one of the world's largest adopters of cryptocurrency, arguing that the statistical methods used by private blockchain analytics firms are flawed and may overestimate adoption rates in more populous countries.
Coinbase, Moov to provide stablecoin infrastructure for US community banks
The partnership will provide stablecoin acceptance, settlement and real-time funding capabilities to over 1,000 community banks and credit unions.
Busan Bank of South Korea completes pilot program for Korean won stablecoin on Kaia Chain.
According to Foresight News , BNK Busan Bank has completed a pilot project on Kaia Chain for a stablecoin infrastructure based on the Korean won, intended for use in digital local currency scenarios. This proof-of-concept (PoC) involved K-STAR Alliance partners AhnLab Blockchain Company, Lambda256, and Open Asset. Test results showed a 100% transaction success rate and a processing time of less than one second.
Central Bank of Brazil: Stablecoins should be considered electronic money instruments
According to Odaily Odaily, the Central Bank of Brazil stated at a hearing of the Congressional Economic Development Committee that stablecoins should be considered electronic money instruments, not digital assets. Fábio Araújo, an advisor to the Central Bank's Financial System Supervision Department, stated that digital assets such as Bitcoin and Ethereum possess scarcity, transferability, and verifiability, while stablecoins, possessing characteristics of a means of payment, should be understood as monetary instruments. The Brazilian Congress is preparing to review Bill No. 4308/2024, proposed in 2024 by Congressman Aureo Ribeiro, to clarify the rules for stablecoins. The Brazilian Crypto Economy Association (Abcripto), whose members include Binance, Coinbase, Fireblocks, Visa, Tether, OKX, and Ripio, opposes this classification. Abcripto stated that this classification will lead to regulatory conflicts, affecting the adoption of stablecoins at both the institutional and retail levels in Brazil, and hindering virtual asset service providers. The Central Bank of Brazil also recently issued a new resolution, elevating its regulation of virtual asset service providers to the same level as that of securities institutions. (Bitcoin.com News)