Financial Stability Board to Propose Global Rules for Cryptocurrencies
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FSB Wants International Regulation on Crypto Activities
According to a Reuters report from today, the Financial Stability Board, which contains a body of regulators, treasury officials, and central bankers from G20 countries, stated that it will propose global rules for cryptocurrencies.
"The FSB will report to the G20 Finance Ministers and Central Bank Governors in October on regulatory and supervisory approaches to stablecoins and other crypto-assets," the FSB said in a statement.
Crypto markets must be subject to effective regulation and oversight commensurate to the risks they pose, both at the domestic and international levels, the report said. Additionally, it may have spill-over effects on traditional finance such as short-term funding markets, the report added.
An effective regulatory framework must ensure that crypto activities posing risks similar to traditional financial activities are subject to the same regulatory outcomes while taking account of crypto-assets and harnessing potential benefits of the technology behind them.
Implementing Applicable International Standards
The members behind FSB support the full and timely implementation of existing international standards.
Should such global regulation for cryptocurrencies are to be implemented, the FSB will implement applicable international standards into national regulatory and supervisory frameworks such as FATF Recommendation 15 and FATF Recommendation 16 and will adopt guidance, recommendations, and best practices of international standard-setting bodies, as appropriate.