Swiss Regulators Warn Banks of Risks in Guaranteeing Stablecoin Issuers' Liabilities

IconCryptoNewsTerminal Staff26 Jul, 2024

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Swiss Regulators Warn Banks of Risks in Guaranteeing Stablecoin Issuers' Liabilities

"The Swiss Financial Market Supervisory Authority (FINMA) has issued a report warning that stablecoin issuers could pose risks to the banks with which they do business.
The banks could face reputational damage and legal risks if the stablecoin issuers fail because of guarantees the banks have made to cover the issuers' liabilities.
FINMA has proposed a number of requirements that it says banks should meet in order to mitigate these risks, including holding deposits in full and covering interest payments. The regulator plans to hold a hearing on the issue on [date]."

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