Investor anxiety about stable coins, which are cryptocurrency and fixed values, is intensifying. This is because Terra (USST), which has recently been considered a major stable coin, has failed to maintain a fixed value of $ 1 due to the ‘Bank Run’, which is rapidly leaving the funds.
The USST was once attracting attention to the top 10 of the overall cryptocurrency, with a market cap of more than $ 18 billion, but the market price plunged to $ 0.1 in less than a week.
The deposit assets, the core product that attracted USST demand, also dropped sharply from about $ 20 billion on the 6th to $ 265 million as of the 16th. The anchor became popular because it guarantees 20%of deposit interest, but caused investor damages due to a plunging coin Luna prices linked to USST and UST.
As large -scale damage occurs, countries around the world are expected to speed up the introduction of stablecoin regulations. In addition, as with the intent of the stable nose, the authorities’ interest in the digital currency (CBDC) issued by the proven subject while maintaining its value has increased.
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There was not much concern about stable coins even before Divegging appeared in Terra. There is a risk in many ways to be distributed while stable coins continue to stabilize their value.
The US Financial Stability Supervisory Commission (FSOC) pointed out that there is a danger to Stable Coin in the annual report published in December last year. Some examples are bank deposits guaranteed by the Federal Deposit Insurance Corporation (FDIC), which provides partial collateral, but under current law, only stablecoin issuers are protected, but there is a risk that users cannot protect.
In the case of the most representative stable coin tether (USDT), it has been pointed out that there is a risk of digging because it does not disclose information about coin reserve in detail. As of the 16th, USDT market cap is about 97.3 trillion won. Therefore, you must have the reserves that are equivalent.
As the USST prices plummeted, the market doubts about the stable coin increased, and the USDT’s market price, which had maintained $ 1, was once lowered to $ 0.95 on the 12th. The USDT average price has since been recovering and has risen to $.99 based on the coin market cap, but it has not yet matched $ 1. It is a two -year Defeging since March 2020.
■ Preparation of regulations such as the US, Europe, and Japan… Parallel with the discussion of the introduction of CBDC
The global financial authorities warn about the risk of investment in stablecoin and are preparing for relevant regulations. In this discussion process, CBDC is paying attention as an alternative to overcome the problem of Stable Coin.
US Treasury Minister Janet Yellen said at the Senate Bank Commission hearing on the 10th that there is a risk of financial stability of Stable Coin, and insisted that the Congress should pass the relevant regulatory law within the year.
Currently, the US Parliament has been proposed in regulations on stablecoin in the US Congress. The legislation includes definition of stable coin, establishing a license system for coin issuers by the Monetary Supervisory Service (OCC), and allowing the issuance of stablecoin for insurance deposit banks.
The Federal Reserve (Fed) also meant. In the financial stabilization report published on the 9th, he pointed out the lack of transparency of assets and vulnerabilities in operating on the stable coin, and feared that “increasing the number of leverage transactions using stable coins can increase volatility and increase the risk of repurchase.” At the same time, CBDC suggested that it could be an alternative to Stable Coin’s financial risk.
The European Union Executive Committee (EC) is considering regulations to prevent mass issuance of stable coins. It is also known that if the daily trading volume exceeds 1 million, it is also considered to demand the suspension of issuance. Regulatory measures are being discussed for issuing institutions, such as asset requirements for reserves, and users to repay assets that correspond to stable coins.
The British Treasury Department and Youngran Bank have been working with CBDC Task Force since April last year to discuss stablecoin regulatory measures and models.
The Japan Finance Agency (FSA) will restrict the issuer of Stablecoin to banks and remittance agencies, and brokerage companies will be added to the new supervision in the future.
The Hong Kong Financial Management Bureau (HKMA) released a report on the 27th of last month about the introduction of the ‘E-HKD’ in the CBDC role. In the report, HKMA said, “Stablecoin can undermine the value of Hong Kong.” It can weaken control. ”
■ “Outlaw ‘stable coin’, just one claim”… Need for regulation in Korea
Domestic authorities also responded to emergency response as USST damage increased rapidly. However, it is pointed out that the relevant regulations should be prepared in advance, as the financial risks have been raised early on the stable coin.
The Financial Services Commission and the Financial Supervisory Service announced on the 15th that they will conduct an emergency trend check for USST and LUNA. At the same time, he plans to create the ‘Digital Asset Basic Act’ to protect investors, and to establish a sub -regulation in 2024 to implement a full -scale law.
Park Sun -jong, a professor of law at Soongsil University, said, “Three years ago, three years ago, the authorities declared that virtual assets were not financial products, and the new government was suggesting that the new government was preparing regulations on securities -type coins. “It broke out,” he said.
“Stable coin is the most important of the manager’s trust, but there is no regulation, so it was only a private operator who issued a coin and claimed to be a stable coin, and nothing was verified.”.
Cobit, a domestic virtual asset exchange, published an analysis report on the Terra case and said, “This case will act as a justification for regulations, and the movement of regulators will accelerate.” It can be limited to banks. ”
He also predicted that “Stayblo -in, such as an institutional -friendly USDC, can benefit relative.”