The Financial Stability Board (FSB)released a statement Monday on the “international regulation and supervision of crypto asset activities.”
The FSB is an international body that monitors and makes recommendations about the global financial system. It will present its findings on a regulatory framework for crypto to the G20 in October this year.
The G20 watchdog said that it is committed to advocate “international consistency of regulatory and supervisory approaches amongst national authorities and international standard-setters as they work towards developing risk-based, technology-neutral policy for the wide spectrum of crypto-assets, grounded in the principle of ‘same, activity, same risk, same regulation.’”
Acknowledging that stablecoins and other crypto assets are evolving at a rapid pace, the FSB detailed that the recent turmoil in crypto markets could “have spill-over effects on important parts of traditional finance such as short-term funding markets.” It elaborated:
“An effective regulatory framework must ensure that crypto-asset activities posing risks similar to traditional financial activities are subject to the same regulatory outcomes, while taking account of novel features of crypto-assets and harnessing potential benefits of the technology behind them.”
Furthermore, “crypto-assets and markets must be subject to effective regulation and oversight commensurate to the risks they pose, both at the domestic and international level,” the FSB noted.
According to the financial stability watchdog, crypto service providers “must at all times ensure compliance with existing legal obligations in the jurisdictions in which they operate.” In the statement, the FSB stressed:
The statement continued:
“The FSB is working to ensure that crypto-assets are subject to robust regulation and supervision.
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.”
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Source: Igaming
