In response to the fallout from last year’s cryptocurrency market turbulence, the Financial Stability Board (FSB) of the G20 has issued a set of recommendations aimed at strengthening global oversight of the crypto industry.
The FSB’s regulatory framework for crypto-asset activities, released for the first time on Monday, reflects lessons learned from the market crashes, including incidents involving FTX and Terra.
The nine recommendations put forth by the FSB cover various aspects of regulation, including enhanced supervision of crypto companies and markets, revised oversight of stablecoins, and cross-border cooperation between regulators.
The framework also emphasizes the need for governance requirements for crypto issuers and mandatory disclosures within the industry.
Based on feedback received during a public consultation, the FSB has further refined its suggestions to address recent events and challenges.
It highlights the importance of safeguarding client assets, mitigating risks associated with conflicts of interest, and the potential transmission of risks within the crypto ecosystem if a key service provider fails.
In a press release, the FSB emphasized that the past year’s events have underscored the inherent volatility and structural vulnerabilities of crypto-assets and related players.
The proposed regulatory measures aim to mitigate these risks and enhance financial stability in the crypto industry.
The FSB’s recommendations will serve as a basis for discussions among G20 member countries and other regulatory bodies as they seek to establish a more robust and coordinated approach to crypto regulation on a global scale.
