G20 Watchdog Announces ‘Robust’ Global Crypto Regulation Coming in October – Bitcoin News Regulation

G20 Watchdog Announces ‘Robust’ Global Crypto Regulation Coming in October – Bitcoin News Regulation

The Financial Stability Board (FSB) says it is working on a “robust” regulatory framework for crypto assets and will report its recommendations to G20 finance ministers and central bank governors in October.

The FSB will present a robust crypto regulatory framework to the G20 in October

The Financial Stability Board (FSB), an international body that monitors and makes recommendations on the global financial system, has announced statement On Monday on “international regulation and oversight of crypto asset activities”.

The G20 Supervisory Board stated that it is committed to promoting “international consistency of regulatory and supervisory approaches among national authorities and international standard setters as they work to develop risk-based policy and neutral technology for a wide range of crypto-assets, based on the principle of ‘same, activity, same. risk, same regulation’.”

Noting that crypto assets, including stablecoins, are developing rapidly, the FSB explained that the recent turmoil in crypto markets “may have spillover effects on important parts of traditional finance such as short-term funding markets”. The organization detailed:

An effective regulatory framework must ensure that crypto-asset activities that present risks similar to traditional financial activities are subject to the same regulatory outcomes, taking into account the new characteristics of crypto-assets and exploiting the potential benefits of the technology behind them.

“Crypto-assets and markets must be subject to effective regulation and supervision commensurate with the risks they represent, both domestically and internationally,” specifies the FSB.

Furthermore, crypto service providers “must at all times ensure compliance with existing legal obligations in the jurisdictions in which they operate,” the financial stability watchdog detailed.

The statement continues:

The FSB is working to ensure that crypto-assets are subject to strong regulation and oversight.

“The FSB will brief G20 finance ministers and central bank governors on regulatory and supervisory approaches to stablecoins and other crypto-assets in October,” the watchdog board concluded.

In February, the FSB published a report examining the risks that crypto poses to financial stability. The report states that “crypto-asset markets are evolving rapidly and may reach a point where they pose a threat to global financial stability due to their scale, structural vulnerability and increasing interconnectedness with the traditional financial system.”

Last week, the US Treasury Department delivered crypto framework for President Joe Biden’s international engagement as instructed in the executive order issued back in March.

What do you think about the FSB working to ensure that crypto assets are subject to strong regulation and oversight? Let us know in the comments section below.

G20 Watchdog Announces ‘Robust’ Global Crypto Regulation Coming in October – Bitcoin News Regulation

Kevin Helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in bitcoin security, open-source systems, network effects, and the intersection between economics and cryptography.

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