The Financial Stability Board (FSB) recently published a global regulatory framework for crypto assets to promote comprehensiveness and international consistency in regulatory and supervisory approaches.
Source:https://www.fsb.org/2023/07/fsb-finalises-global-regulatory-framework-for-crypto-asset-activities/
The Global Standards Body is concerned that further development of ties to traditional finance could increase the spillover effect of crypto assets on the wider financial system. Since the events of the past year have highlighted the inherent volatility and structural vulnerability of crypto assets and related players.
The framework consists of two separate sets of recommendations:
- Recommendations for monitoring the activities and markets of crypto assets.
- Reviewed high-level recommendations on regulation, oversight of “global stablecoin” agreements.
The recommendations focus on addressing financial stability risks and do not fully cover all specific categories of risks associated with dealing with crypto assets. Central bank digital currencies (CBDCs), which are treated as digitized central bank liabilities, are not subject to these guidelines.