Financial Stability Board Will Propose Crypto Regulation In October

The Financial Stability Board will propose crypto regulation in October and will submit a report on recommended rules to the G20 so let’s have a closer look at today’s latest crypto news.

The Financial Stability Board is an international body that monitors financial systems and proposes rules for preventing financial crises but now it plans to present recommendations for regulating crypto. The Swiss-based organization reprots to the G-20 group of the world’s biggest economies. The recommendations will cover stablecoins and other assets as well. The statement added that the recent turmoil in the markets outlined the volatility and the structural vulnerabilities as well as the increasing interconnectedness between the crypto markets and the traditional ones:

“The FSB is working to ensure that crypto-assets are subject to robust regulation and supervision.”

The recent crypto market downturn and the collapse of the private stablecoins Terra USD, are only speeding up the regulatory action. The policymakers in the EU agreed on the landmark bill to protect the crypto issuers and the service providers with a heavy emphasis on stablecoin rules. The FSB also published a report warning that the unregulated crypto sector could derail global financial stability also the chair Klaas Knot said that the watchdog is in a good place to take the lead in setting up the global regulatory framework for the assets.

The FSB has plans to submit a public consultation report to the G20 and review the high-level recommendations for supervision, regulation, and oversight of stablecoins. The proposed rules could include other ways to extend the frameworks and close the gaps to implement this regulation. The FSB plans to submit a public consultation report with recommendations for promoting the international consistency of regulatory and supervisory approaches to other assets.

As recently reported, The FSB Chair Klaas Knot raised some concerns that the crypto sector can harm the monetary network in the near future as the digital asset market is expanding quite fast with some of the tokens being employed by criminals in illicit activities. The lack of regulatory frameworks applied to the digital asset industry was a problem that was addressed by plenty of prominent individuals and the latest to give his opinion was Knot, the president of the Dutch Central Bank and FSB Chairman.