SIO-14.8 Administration
Legal Source
SIO-14.8.1
Article 136 of the CBB Law empowers (but does not oblige) the CBB to assume the administration of a stablecoin issuer in certain circumstances. These circumstances are outlined in the above Article and may include the following:
(a) The stablecoin issuer has become insolvent;(b) Its solvency is in jeopardy;(c) Its continued activity is detrimental to the financial services industry in the Kingdom; or(d) Its license has been cancelled.Added: July 2025SIO-14.8.2
Article 139 of the CBB Law provides that where the CBB assumes the administration of a licensee, the licensee concerned may appeal within 10 days to the CBB and, subsequently, the courts, in order to challenge its administration by the CBB.
Added: July 2025CBB Policy
SIO-14.8.4
The CBB views the administration of a stablecoin issuer as a very powerful sanction and will generally only pursue this option if less severe measures are unlikely to achieve its supervisory objectives.
Added: July 2025SIO-14.8.5
Although Article 136 of the CBB Law specifies the circumstances in which the CBB may pursue an administration, it does not oblige the CBB to administer a stablecoin issuer. Faced with the circumstances described, the CBB may pursue other courses of action such as suspension of a license (under Article 131 of the CBB Law), if it considers that these are more likely to achieve the supervisory outcomes sought. Because an administration is likely to send a negative signal to the markets about the status of a stablecoin issuer, other supervisory actions may in fact be preferable in terms of protecting the interests of those with a claim on the stablecoin issuer.
Added: July 2025SIO-14.8.6
The criteria used by the CBB in deciding whether to seek an administration of a stablecoin issuer include the following:
(a) The extent to which the interests of the market, its users and those who have a claim on the stablecoin issuer would be best served by the administration of the license, for instance because of the potential impact on asset values arising from an administration;(b) The extent to which other regulatory actions could reasonably be expected to achieve the CBB’s desired supervisory objectives (such as restrictions on the licensee’s operations, including limitations on new business and asset disposals);(c) The extent to which the liquidity or solvency of the stablecoin issuer is in jeopardy; and(d) The extent to which the licensee has contravened the conditions of the CBB Law, including the extent to which the contraventions reflect more widespread or systemic weaknesses in controls and/or management.Added: July 2025Procedure for Implementing an Administration
SIO-14.8.7
All proposals for assuming the administration of a stablecoin issuer are subject to a thorough review by the CBB of all relevant facts, assessed against the criteria outlined in Section SIO 14.8.1 to SIO-14.8.3.
Added: July 2025SIO-14.8.8
A formal notice of administration is issued to the stablecoin issuer concerned and copies posted in every place of business of the stablecoin issuer. As soon as practicable thereafter, the notice is also published in the Official Gazette and in one Arabic and one English newspapers in the Kingdom. The term “in administration” should be clearly marked in all the stablecoin issuer’s correspondence and on its website, next to the stablecoin issuer’s name.
Added: July 2025SIO-14.8.9
Article 136 of the CBB Law allows a stablecoin issuer 10 days following the administration taking effect in which to appeal to the CBB. If the CBB refuses the appeal, the stablecoin issuer has a further 30 calendar days from the date of the refusal in which to lodge an appeal at the courts. So as to reduce the potential damage of an administration order being applied and then withdrawn on appeal, where feasible the CBB will give advance notice to a stablecoin issuer’s Board of its intention to seek an administration, and allow the Board the right of appeal prior to an administration notice being formally served.
Added: July 2025
