New Regulatory Directive Addresses Stablecoin Functions and Offshore RWA Services
A recent directive issued by eight Chinese government departments marks a significant evolution in the nation's approach to cryptocurrency regulation. Notably, this "Notice on Further Preventing and Disposing of Risks Related to Virtual Currency and Related Issues" (2.6 Notice) is the first in China's virtual currency regulatory history to explicitly supersede previous pronouncements, such as the 94 Announcement and 924 Notice.
The most impactful provision of the 2.6 Notice is its explicit recognition that stablecoins pegged to fiat currencies can, in practice, fulfill some functions of legal tender during their circulation. This acknowledgment signals a shift in how authorities view the utility and potential implications of these digital assets.
Furthermore, the directive outlines specific requirements for offshore subsidiaries and branches of domestic financial institutions offering "real-world asset" (RWA) services. While this offers a pathway for such activities, it is crucial to note that these provisions are exclusively intended for licensed financial entities, emphasizing a controlled and regulated approach to the integration of RWA into the financial system.
#crypto #blockchain #news
A recent directive issued by eight Chinese government departments marks a significant evolution in the nation's approach to cryptocurrency regulation. Notably, this "Notice on Further Preventing and Disposing of Risks Related to Virtual Currency and Related Issues" (2.6 Notice) is the first in China's virtual currency regulatory history to explicitly supersede previous pronouncements, such as the 94 Announcement and 924 Notice.
The most impactful provision of the 2.6 Notice is its explicit recognition that stablecoins pegged to fiat currencies can, in practice, fulfill some functions of legal tender during their circulation. This acknowledgment signals a shift in how authorities view the utility and potential implications of these digital assets.
Furthermore, the directive outlines specific requirements for offshore subsidiaries and branches of domestic financial institutions offering "real-world asset" (RWA) services. While this offers a pathway for such activities, it is crucial to note that these provisions are exclusively intended for licensed financial entities, emphasizing a controlled and regulated approach to the integration of RWA into the financial system.
#crypto #blockchain #news
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