- FSB Publishes Global Regulatory Framework for Crypto Activities: The Financial Stability Board (FSB) has completed its global regulatory framework for crypto asset activities, aiming to enhance the consistency and comprehensiveness of regulatory and supervisory practices on an international scale.
- Focus on Regulation and Stablecoins: The guidelines focus on the regulation of cryptocurrencies and global stablecoins, encompassing high-level recommendations for crypto regulation in general, as well as revised high-level recommendations specifically tailored for global stablecoins.
- Avoiding Conflicts of Interests: The FSB emphasizes the need for local regulators to prevent any activities that could impede the identification of responsible entities, including decentralized finance (defi) protocols. Additionally, it is suggested that global stablecoin issuers may need to obtain permits to operate in each jurisdiction as an added level of authority oversight.
FSB Publishes Global Regulatory Framework for Crypto Activities
The Financial Stability Board (FSB) has completed its global regulatory framework for crypto asset activities, aiming to enhance the consistency and comprehensiveness of regulatory and supervisory practices on an international scale. Built on the principle of ‘same activity, same risk, same regulation,’ this framework establishes a solid foundation for enforcing consistent and comprehensive regulations for crypto asset activities and stablecoins, taking into account the associated risks and fostering responsible developments.
Focus on Regulation and Stablecoins
On July 17th ,the FSB released a public note along with two guideline documents , focusing on the regulation of cryptocurrencies and global stablecoins. The guidelines encompass high-level recommendations for crypto regulation in general, as well as revised high-level recommendations specifically tailored for global stablecoins, which include stablecoins with cross-jurisdictional use.
Avoiding Conflicts of Interests
>The FSB emphasized that it is crucial for crypto platforms to segregate clients’ digital assets from their own funds and establish clear functional separations to avoid conflicts of interest. Additionally, regulators must ensure close cross-border cooperation and oversight. Addressing privacy concerns surrounding cryptocurrencies, the FSB suggests that local regulators should prevent any activities that could impede identification efforts related to decentralized finance (defi) protocols.
Global stablecoin issuers may also be asked to obtain permits from each jurisdiction they operate in as an added layer of authority oversight.
Next Steps
>The FSB will continue reviewing the global implementation status following these guidelines by end 2025. As part of this step they have also shared plans collaborating with other organizations such as G20 members or intergovernmental groups looking into similar issues in order to promote open dialogue between all stakeholders involved .
Conclusion
>The release of this set of guidelines marks a major milestone towards achieving standardization across jurisdictions which can help protect investors while avoiding market fragmentation due to different approaches by different nations when it comes down to regulating cryptocurrency activities or issuing tokens . With this new set up we can hope more trust will be put into these emerging technologies with sound legislation being put forth over time .
