CBB 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 2025
