Financial Stability Board Publishes Final Report on International Regulatory Framework for Crypto

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The Financial Stability Board (FSB) is an international organization composed of members from the Group of Twenty (G20) countries and other major economies. It is responsible for coordinating global financial regulation, developing, and implementing global financial standards. Recently, the FSB released the final report on the International Regulatory Framework for Cryptocurrencies, which includes two sets of recommendations:

1.High-level recommendations for the regulation, supervision, and oversight of crypto asset activities and markets, totaling nine points. These recommendations cover various aspects, such as defining and classifying crypto assets, registration, reporting, auditing, risk management, consumer protection, conflicts of interest, and cross-border cooperation.

2.Revised high-level recommendations for the regulation, supervision, and oversight of "global stablecoins," comprising ten points. These recommendations are specifically targeted at addressing the unique risks and challenges posed by global stablecoins, and they require global stablecoin issuers and operators to adhere to higher standards and requirements.

These recommendations are based on the principle of "same activity, same risk, same regulation," providing a solid foundation for ensuring consistent and comprehensive regulation of crypto asset activities and stablecoins. The proposed guidelines are also high-level, flexible, and technology-neutral, allowing them to adapt to the rapidly changing and innovative nature of the crypto asset market.

FSB member countries have committed to applying the agreed-upon standards and will review the implementation of these standards by the end of 2025. Additionally, the FSB will collaborate with the International Monetary Fund (IMF) to submit a joint report to the G20 in September 2023, consolidating the policy outcomes of the IMF's work on macroeconomic and monetary issues and the FSB's work on regulatory and supervisory matters.