G20 regulator FSB to announce new crypto regulations in October 2022

G20 regulator FSB to announce new crypto regulations in October 2022

The Financial Stability Board (FSB), a body of regulators and central bankers from the Group of 20 economies (G20), has recently issued a statement on the regulation & supervision of crypto asset activities worldwide.

The G20 watchdog said that it is devoted to encouraging global consistency of supervisory and regulatory approaches among national and international standard setters as organizations work to develop technology-neutral, risk-based policies for the broad range of crypto-assets, grounded on the principle of ‘same risk, same activity, same regulation.’

The FSB notified that the crypto assets, along with the stablecoins, are developing fast and that the new upheaval in crypto markets may provide spill-over effects on some crucial parts of traditional finance like short-term funding markets.

It mentioned that an efficient regulatory framework must ensure that the crypto asset activities laying out risks like traditional finance activities will lead to same regulatory outcomes, considering the new features of crypto-assets and utilizing potential benefits of the technology behind them.

The FSB further elaborated that crypto-assets and markets must function with effective regulation, and the risks they possess must be supervised at the international and national levels. The crypto service providers must also comply with the standing legal obligations in the jurisdictions in which they operate.

The FSB is working on ensuring that crypto assets must comply with robust regulation and supervision. It is also planning to report the regulatory and supervisor approaches for stablecoins and other crypto assets to the G20 finance ministers and central bank governors in October, concluded the watchdog.

In February, the FSB issued a report analyzing the risks that crypto causes to financial stability. The report further notified that crypto asset markets are quickly evolving and are expected to reach a point where they pose a threat to the global financial stability, given their scale, structural vulnerabilities, and rising interconnection with the conventional financial system.

Source Credit - https://blockchaintimes.news/2022/07/12/g20-watchdog-announces-robust-global-crypto-regulation-coming-in-october/