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As the FCA’s consultation on stablecoins comes to a close today, Chor Teh, Director, Director Financial Crime Compliance at Moody’s Analytics provides expert commentary on the expected outcomes:
Chor Teh, Director, Director Financial Crime Compliance at Moody’s Analytics comments:
“Stablecoins are here to stay, but just how stable are they? In line with crypto’s increasing adoption, regulators are examining the best way to de-risk a historically volatile space.”
“The FCA’s consultation looks like one of the first steps for doing so, with the regulator seeking to draft legislation for stablecoins before moving on to a wider range of crypto assets. What’s interesting about the consultation is the number of participants the FCA has suggested it’s suitable for. Outside of crypto firms, the FCA wants insights from consumer groups and retailers who may consider using stablecoins as an alternative form of payment.”
“2024 will be a year when crypto becomes increasingly professionalised and used more frequently in everyday financial transactions. Whatever the outcome of the consultation, those within organisations responsible for due diligence and de-risking will need to automate real-time and comprehensive data checks into their KYC workflows, to best prepare for adherence to any new regulation and meet the growing demands to assess crypto risks.”
