Key points:
- G20 Watchdog To Recommend Global Crypto Rules In October
- Who Are The Financial Stability Board (FSB)?
- This Comes After US Treasury Published Crypto “Framework”
The Financial Stability Board (FSB), a global financial regulator that includes all G20 countries is set to propose international regulations for cryptocurrencies and stablecoins in October. The FSB has its roots in the Financial Stability Forum (FSF) and this step comes on the back of last week’s US Treasury factsheet for regulating international cryptocurrency transactions.
G20 watchdog to recommend global crypto rules in October
On Monday the FSB published a statement, which covers “International Regulation and Supervision of Crypto-asset Activities.” In the statement, the international financial regulator is due to report to the finance ministers of the G20 group of nations and also their central bank governors with recommendations on the supervision and regulatory framework for digital assets including cryptocurrencies and stablecoins. The watchdog aims to present their findings in October 2022, after a public consultation report on the review of recommendations.
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This report has come on the back of 2022 market disorder, which the regulator underlined with concern of the cryptocurrency industry’s “increasing interconnectedness with the traditional financial system.” With respect to stablecoins, they went on to state that they need to adhere to “high regulatory and transparency standards, maintain at all times the reserves that preserve stability of value and meet relevant international standards.”
Who are the Financial Stability Board (FSB)?
The Financial Stability Board was established after the G20 London Summit in 2009 as a successor to what used to be known as The Financial Stability Forum (FSF, founded in 1999). It includes all twenty major economies (the G20), FSF members and the European Commission (EC). The FSB contribute their knowledge about global financial issues like stability or liquidity standards for banks around the world.
The FSB site states, “The FSB promotes international financial stability; it does so by coordinating national financial authorities and international standard-setting bodies as they work toward developing strong regulatory, supervisory and other financial sector policies. It fosters a level playing field by encouraging coherent implementation of these policies across sectors and jurisdictions.”
This Comes After US Treasury Published Crypto “Framework”
Last week we covered the publication of a US Treasury factsheet on regulating international cryptocurrency transactions. The recent announcement by the Treasury Department, gave an in-depth look at how they plan on regulating international transactions involving cryptocurrencies. The U S could work together with foreign financial regulators to build common standards in order to regulate this area that was not traditionally covered under Federal law.