Fca Stablecoins4 Feb 2024 13:48
'The Senior Management Arrangements, Systems and Controls ('SYSC') Sourcebook will apply to all issuer and custodian firms, i.e. they must maintain robust governance and carry out effective risk management practices. The scope for financial crime in this area is wide and, recognising this, the FCA proposes a tighter grip on monitoring money laundering. The Bank of England proposes prudential requirements on firms, intending for Approved Stablecoin firms to maintain specified levels of capital and liquidity, so that liabilities can be met and promote faith in consumers. Additional safeguards include the distribution to beneficiaries of the backing assets, in the event a stablecoin firm suffers an insolvency event'
I wonder if this is where Semnet becomes a vital component for Gst's stablecoin plans?
Source - https://oconnors.law/news-views/fca-proposals-on-the-regulation-of-stablecoins-in-the-uk/