The Financial Stability Board (FSB) has published a proposed framework for global regulation of crypto assets.
The FSB stated in a release that “crypto-assets and markets must be subject to effective regulation and oversight commensurate with the risks they pose.”
While acknowledging there is currently little chance of systemic risk, the FSB noted that there is a potential for digital assets to rapidly scale and there is a need for “pre-emptive” evaluation of policy responses. Where crypto firms provide services similar to traditional financial services, regulation must be equally rigorous – “same risk, same regulation.” The FSB noted that many regions are making progress towards ensuring crypto activities are subject to robust regulation, but more work must be pursued.
Read the FSB proposed framework below
The proposal is accepting comments from the public until December 15, 2022.
The FSB is also submitting to the G20 Finance Ministers and Central Bank Governors a set of proposals for the regulation and supervision of crypto-asset activities. The FSB is expected to finalize the proposed recommendations by mid-2023.