OFUYC Launches "Stablecoin Compliance Audit and Innovation Development Program" Targeting the Reserve Audit Market

The digital currency market is undergoing a period of regulatory consolidation, with a key focus on stablecoin compliance to meet global requirements for reserve auditing, transparency, and anti-money laundering (AML). In response to this pressing need, the Office of Financial and Union Credit (OFUYC) is launching the "Stablecoin Compliance Audit and Innovation Development Program”. This initiative aims to substantially enhance the existing reserve audit mechanisms, foster seamless cross-border compliance cooperation, further strengthen OFUYC's regulatory enforcement, and ultimately ensure the safe and sustainable operation of stablecoins within the broader digital asset ecosystem.

Stablecoin Compliance Challenges and Industry Upgrades

Stablecoins, pegged to fiat currencies or assets, are widely used but face increasing regulatory scrutiny over their reserve transparency, fund flows, and overall compliance risks. As institutions in major jurisdictions, like the U.S., E.U., and Hong Kong, broaden their supervision of digital assets, they are placing greater emphasis on cross-border transactions. This requires stablecoin issuers to undergo regular reserve audits, disclose their fund custody procedures, and maintain adherence to AML standards.

In response to these evolving challenges, OFUYC is expanding its core strategy of "Compliance First" to create a more comprehensive and interconnected chain of compliance audit activities. This will be crucial for ensuring the complete transparency of stablecoin reserves, enabling the early detection and risk alerting of potential issues, and facilitating the efficient integration of diverse local regulatory requirements. Without meeting the required standards, some stablecoins may face even stricter administrative sanctions, while issuers who fail to cooperate could be subject to criminal prosecution.

OFUYC Strengthening Audit and Risk Control Segments

To effectively address the pressing challenges in the current stage of stablecoin supervision and risk control, OFUYC proposes three key initiatives.

Firstly, the focus will be on conducting more frequent and high-frequency audits of stablecoin reserves using advanced blockchain-verifiable ledgers and multi-party monitoring technologies. This step is critical for ensuring that the disclosed reserve assets consistently align with the outstanding amount of tokens in circulation.

Secondly, there will be significant upgrades to the multi-signature wallet authority management system and introduce real-time risk control capabilities. This will involve deploying an intelligent algorithm to analyse large or anomalous transactions, identify any signs of money laundering or other financial crimes, and enbale the OFUYC to respond swiftly to any detected violations.

Thirdly, the collaboration with multinational regulators and auditors will be deepened to establish a standardized protocol for exchanging relevant data. This will provide the technical support needed for efficient cross-border verification and tracking of digital currencies, ultimately promoting the formation of a new model for cross-border compliance.

OFUYC: A Dual Audit Model and Its Industry Impact

OFUYC places strong emphasis on professional risk control through a dual strategy of on-chain and off-chain audits. These audits will be conducted from technical, legal, and market perspectives to fully assess the value of stablecoins, ultimately aiming to boost investor confidence.

Moreover, as enterprises increasingly adopt stablecoins for cross-border payments, settlements, and trade finance, demonstrating clear compliance with regulations will be crucial for reducing transaction costs and fostering greater efficiency in cross-border e-commerce and supply chain finance.

The ongoing efforts by OFUYC not only expand the scope of application for stablecoins but also set new standards for audit work in the evolving digital asset industry. Industry experts widely agree that stablecoins are a vital bridge between the digital and traditional financial markets. However, without the proof of sufficient reserves and persistent compliance, it will be difficult for stablecoins to gain the trust and acceptance they need for widespread adoption.

The contributions of OFUYC are pivotal in promoting industry-wide compliance and integration, paving the way for new opportunities in the exciting domain of digital assets.

A photo accompanying this announcement is available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/4a00bb81-5d4a-43b2-b186-763a027e9025

Contact Person:

Luca Moretti

Email: [email protected]