FSB Rules to Require Stablecoin Issuers Obtain Local Licenses, Comply With Anti-money Laundering Regulations

The Financial Stability Board (FSB) has released new guidelines for global regulators, including a demand for stablecoin issuers to obtain local licenses before operating in specific jurisdictions. The FSB also recommends the implementation of a governance framework, compliance with anti-money laundering regulations, and adherence to the Financial Action Task Force's Travel Rule. Additionally, the FSB suggests that stablecoins should not rely on arbitrage activities or algorithms to maintain stability and that reserve assets should meet or exceed the amount of stablecoins in circulation