The Bank of Italy calls for the establishment of a regulatory framework to prevent stablecoin runs

ChainCatcher news, the Bank of Italy released the June report on "Markets, Infrastructures and Payment Systems," calling for regulators to establish a robust, risk-based regulatory framework for stablecoins to prevent "runs" on stablecoins. The report suggests that regulators apply the same financial conduct standards to stablecoin issuers in the industry.

The Bank of Italy stated that the rise of cryptocurrencies, coupled with several boom and bust cycles in an unregulated environment, has caused significant harm to consumers. Given the close relationship between stablecoins and DeFi, regulators should particularly prioritize stablecoin issuers. Policy interventions for stablecoins and DeFi must remain well-synchronized, as the adoption of stablecoins could stimulate a new wave of DeFi innovation and enhance the interconnectivity between traditional finance and decentralized finance.

Additionally, the Bank of Italy emphasized that there is no need to subject all crypto assets or activities to financial services regulation and called for international cooperation to establish a global regulatory framework. (Cointelegraph)