Legal Source
SIO-14.9.1
Article 48 of the CBB Law empowers the CBB to cancel or amend a license under certain circumstances. These include cases where a stablecoin issuer has:
(a) Failed to satisfy its license conditions;(b) Violated the terms of the CBB Law, CBB Regulations or this Module; or(c) Failed to start business within six months from the date of the license;(d) Ceased to carry out the licensed activities permitted; or(e) Not acted in the legitimate interest of its customers or creditors.Added: July 2025SIO-14.9.2
Article 48(d) of the CBB Law also requires the CBB to give the stablecoin issuer concerned reasonable time to object to any proposed cancellation or amendment of its license.
Added: July 2025SIO-14.9.3
The CBB generally views cancelling a license as appropriate only in extreme circumstances, when faced with the gravest of contraventions or when left with no other reasonable means of successfully addressing the regulatory failings in question. Cancellation or amendment of a license, however, may also be required in circumstances outside of an enforcement context, for instance because of a change in the business profile of a stablecoin issuer.
Added: July 2025SIO-14.9.4
The criteria used by the CBB in assessing whether to seek cancellation or amendment of a license include:
(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 cancellation or amendment of the license;(b) The extent to which other regulatory penalties could reasonably be expected to achieve the CBB’s desired supervisory objectives;(c) The extent to which the stablecoin issuer has contravened the conditions of its license and/or the CBB Law, including the seriousness, duration and/or frequency of the contravention(s) concerned, and the extent to which the contraventions reflect more widespread or systemic weaknesses in controls and/or management;(d) The extent to which the stablecoin issuer has been involved in financial crime or other criminal conduct; and(e) The stablecoin issuer’s past compliance record and conduct following the contravention(s).Added: July 2025SIO-14.9.5
When the CBB issues a notice of cancellation or amendment as an enforcement tool, it will only implement the actual change once it is satisfied that there are no longer any regulated activities for which it is necessary to keep the current authorisation in force. Until such time as these activities have been run off or moved to another stablecoin issuer, the CBB will control these activities through other means (such as taking the stablecoin issuer into administration or through issuing Directions).
Added: July 2025SIO-14.9.6
All proposals for cancelling or amending a license are subject to a thorough review by the CBB of all relevant facts, assessed against cases and the criteria outlined in Sections SIO-14.9.1, SIO-14.9.2 and Section SIO-14.9.3 to SIO-14.9.5. After being assessed at the Director or more senior official of the CBB, proposals are submitted to H.E. The Governor for approval.
Added: July 2025SIO-14.9.7
Once approved within the CBB, a formal notice of cancellation or amendment is issued to the stablecoin issuer concerned. The notice of cancellation or amendment will describe the factual circumstances of the contraventions concerned, and the CBB’s rationale for the proposed cancellation or amendment, as measured against the criteria outlined in Sections SIO-14.9.1, SIO-14.9.2 and Section SIO-14.9.3 to SIO-14.9.5.
Added: July 2025SIO-14.9.8
The stablecoin issuer has 30 calendar days from the date of the notice in which to lodge an appeal. The appeal should be addressed to the Board of the CBB and copied to H.E. the Governor of the CBB.
Added: July 2025SIO-14.9.9
If an appeal is lodged, the Board of the CBB will make a final ruling within 60 calendar days of its date of issuance.
Added: July 2025SIO-14.9.10
A stablecoin issuer may appeal to a competent court within 60 calendar days of the above final ruling for a decision. The court’s decision will then be final.
Added: July 2025
