The Financial Stability Board (FSB) has finalized a comprehensive global regulatory framework for crypto-asset activities, aiming to address the challenges and risks associated with this rapidly evolving sector. With the lessons learned from recent events in crypto-asset markets and valuable feedback from the public, the FSB’s recommendations mark a significant step towards consistent and robust regulation.
Adhering to the principle of “same activity, same risk, same regulation,” the framework ensures that crypto-asset activities and stablecoins are subject to regulations that match the risks they pose. The FSB’s high-level recommendations cover various aspects, including supervision, oversight, and market regulations related to crypto-asset activities. Additionally, the framework also includes revised recommendations for the regulation and supervision of “global stablecoin” arrangements, reflecting the FSB’s commitment to addressing emerging challenges.
To maintain global consistency, the FSB will collaborate with standard-setting bodies to promote unified regulations. This entails considering the necessity for additional guidance or standards while monitoring the implementation status at the jurisdictional level.
The FSB’s decisive actions have been applauded by industry experts and stakeholders, as they provide much-needed clarity and stability to the crypto-asset market. With this new framework, investors and users can have increased confidence, knowing that their activities are subject to comprehensive regulation, ultimately fostering a more secure and trustworthy crypto-asset ecosystem.
