SMFSC Sets Out Self-Regulatory Approach for Cryptoassets and Stablecoins

The San Marino Financial Standard Council (SMFSC), as a financial self-regulatory association, outlines a practical standards-based approach to cryptoassets and stablecoins aimed at improving market trust, user safety, and operational accountability across the industry.

For cryptoasset service providers, SMFSC emphasizes clear product disclosures (fees, risks, conflicts, and custody terms), robust governance and internal controls, cybersecurity and wallet security practices, and reliable transaction monitoring to reduce fraud and abuse. Platforms are encouraged to strengthen onboarding and identity checks, implement risk-based controls for deposits/withdrawals, and maintain incident response procedures with timely user communication.

For stablecoins, SMFSC prioritizes reserve integrity and redemption reliability. Issuers should define the stabilization mechanism, ensure reserves are segregated, liquid, and appropriately risk-managed, and provide transparent reporting on reserve composition and liabilities. SMFSC also encourages independent attestations, clear redemption policies, and operational resilience measures to support continuous convertibility under stress.

Across both areas, SMFSC supports market integrity standards, fair dealing practices, complaint handling, and continuous improvement as technology and risks evolve.