Crypto assets: angels or devils?
Crypto assets
Crypto assets (virtual assets) refer to any digital representation of value that can be digitally traded, transferred or used for payment.
Crypto assets have many potential benefits and dangers. They have the scope to make payments easier, faster and cheaper, and provide alternative methods for those without access to regular financial products. However, they are largely unregulated and also have the potential to become worthless and are vulnerable to cyberattacks and scams.
Stablecoins
Stablecoins, unlike other crypto assets, aim to maintain a fixed parity relative to a specific currency.
Stablecoins are currently mostly used for crypto trades, although they have the potential to be used in other payment transactions.
Stablecoins offer several potential benefits. They could increase efficiency in payments - particularly cross-border transactions, including by reducing the costs and enhancing the speed of remittances - and widen access to digital finance through increased competition.
Stablecoins could also carry significant risks. These risks are related to macro financial stability, operational efficiency, financial integrity, and legal certainty. The risks would mostly arise in the
absence of adequate laws, regulations, supervision, and backstops, and if adoption of stablecoins increases.
The cross-border nature of stablecoins adds complexity for regulators, highlighting the need for stronger collaboration.
AML/CFT and financial integrity
The rapid expansion of digital assets has significantly increased the complexity of anti-money laundering (AML) and counter-terrorist financing (CFT) supervision. Crypto assets and stablecoins, by their nature, facilitate fast, cross-border transactions and may involve decentralised or partially anonymous systems. While these features can enhance efficiency and financial inclusion, they also create new opportunities for illicit activity.
MiCAR versus the GENIUS Act
Digital assets have evolved from a niche technological innovation into an increasingly important component of global financial markets. Within this ecosystem, stablecoins have emerged as a key link between traditional finance and blockchain-based systems, raising regulatory concerns related to financial stability, consumer protection and monetary sovereignty. In response, the European Union and the United States have adopted different regulatory approaches. The EU’s Markets in Crypto Assets Regulation (MiCAR) establishes a broad but residual framework for crypto assets not already covered by existing EU financial legislation, combining rules for stablecoins with a wider regime for crypto asset service providers. By contrast, the US GENIUS Act focuses specifically on payment stablecoins, establishing rules on issuance, reserve backing and supervision within the existing US regulatory structure.
2026 UIA Marrakech Congress
Topics in current discussions on crypto assets will be object of the Banking and Financial Services Law Commission panel on “Crypto assets: angels or devils?” at the “70th UIA Congress”, that will take place in Marrakech (Morocco) from October 28 to November 01, 2026. Africa is one of the fastest-growing crypto markets in the world. In Morocco, a draft law on crypto assets has been prepared with World Bank assistance and is in the process of being adopted. We are waiting for you!