SMFSC Seeks Further Views on Stablecoins and Crypto Custody

The San Marino Financial Services Committee (SMFSC) has released new proposals covering stablecoin issuance, crypto custody, and the financial resilience of crypto-asset firms. The initiative aims to build a safe, transparent, and competitive digital assets sector.

These proposals mark the latest step in the country’s regulatory roadmap, following extensive engagement through roundtables and feedback on earlier discussion papers.

Stablecoin Framework

Stablecoins are crypto assets designed to maintain a stable value by pegging to one or more fiat currencies. They are viewed as a catalyst for greater efficiency in payments and settlements, especially in cross-border transactions. The SMFSC’s proposed rules would require regulated stablecoins to preserve their value and mandate issuers to provide clear and transparent information on how backing assets are managed.
To further support innovation, the SMFSC also plans to expand its innovation services to include a specific focus on stablecoins in the coming months.

Cooperation with Banks

The SMFSC will work closely with banks in San Marino to develop a clear regulatory pathway for stablecoins, ensuring consistency and clarity for firms operating under the new regime.

Crypto Custody and Risk Management

For firms offering crypto custody services, the proposals emphasize that customer assets must be securely safeguarded and remain easily accessible at all times. Additionally, the framework seeks to reduce both the likelihood and impact of potential failures among regulated firms engaged in stablecoin issuance or custody services, strengthening overall market resilience.