Regulatory oversight increases the risk of censoring endpoints of the stablecoin's network (such as the issuer, banks, and custodians) as well as users. A score of 0 indicates a high degree of government censorship risk.

First Digital Labs is not regulated, but it has banking relationships with regulated banks in Hong Kong and Switzerland.

Note: Censorship resistance is not a key objective common to all stablecoins. Consequently, a low score may not be a relevant source of concern to most stablecoin users. Furthermore, regulatory oversight can also be beneficial to some users as it entails more robust consumer protection mechanisms and increased transparency.