#StablecoinLaw
What is the “Stablecoin Law”?
The Stablecoin Law is legislation aimed at:
1. Ensuring transparency and reserves:
• Ensuring that the issuer of the stablecoin maintains cash reserves or equivalents at a 1:1 ratio.
• Regularly auditing the reserves by independent parties.
2. Consumer protection:
• Ensuring the safety of funds deposited by users.
• Obligating issuers to provide clear information about how the stablecoin works.
3. Anti-money laundering (AML) and counter-terrorism financing (CFT):
• Enforcing identity verification (KYC) for users.
• Tracking financial transfers.
4. Licensing and supervision:
• Requiring the issuer to obtain a license from financial authorities.
• Subjecting them to oversight by regulatory bodies.