During today’s BIS conference on DeFi, a considerable proportion of the panel on DeFi and stablecoins was spent discussing compliance and anonymity. The panel included David Newns, the CEO of the SIX Digital Exchange, and David Puth, former CLS CEO and current head of Centre, the standards body behind the second largest stablecoin, USDC.
There’s been considerable discussion about the regulation of custodial stablecoins backed by fiat currency deposits and assets. Some level of identity requirement from regulators is potentially on the cards. But there is also a class of non-custodial stablecoins, such as the U.S. dollar-denominated DAI, backed by Ether and a range of other assets.
Clearmatic’s Robert Sams asked Aleksander Berentsen of the University of Basel whether these non-custodial coins should also be regulated. Berentsen believes that isn’t practical as many are smart contracts. Hence there’s no person or location to address a regulatory letter.
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