Bermuda Monetary Authority Consultation Guidance On Digital Asset Business Single Currency Pegged Stablecoins (SCPS)

KEY TAKEAWAYS:

• SCPSIs must have strong governance and risk management to meet regulatory standards and safeguard operations
• They must also keep ample, liquid backing assets to maintain their stablecoin value and prevent de-pegging, with daily asset valuations
• SCPSIs need to provide full disclosures on operations and assets, conduct regular stress tests, and have plans for crisis management and orderly shutdowns to ensure investor protection

Walkers have successfully represented the Plaintiffs in a recent hearing before the Grand Court of the Cayman Islands in Cowan v Equis (FSD 22 of 2018 (RPJ)).

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The Bermuda Monetary Authority (the "Authority") released its Digital Asset Business Single Currency Pegged Stablecoins (SCPS) Consultation Guidance (the "Guidance").