The G20’s Financial Stability Board (FSB) is rolling out a set of recommendations for crypto and stablecoin policies in an effort to address the sector’s international regulatory gaps.
The crypto recommendations are designed to establish a “global regulatory baseline” after last year’s high-profile Terra (LUNA) and FTX implosions rattled the digital asset sector.
The FSB encourages cross-border cooperation, coordination and information sharing between different governments. The international body also recommends that domestic regulators require crypto-asset issuers and service providers to disclose their governance frameworks.
“The governance framework should be proportionate to their risk, size, complexity and systemic importance, and to the financial stability risk that may be posed by activity or market in which the crypto-asset issuers and service providers are participating. It should provide for clear and direct lines of responsibility and accountability for the functions and activities they are conducting.”
The FSB also suggests regulators require crypto firms to implement comprehensive frameworks for risk management and secure data collection. Additionally, the Board recommends authorities monitor the connections between the crypto ecosystem and the wider world of traditional finance in order to address any potential financial stability risks such connections could present.
The FSB also issued similar regulatory recommendations for stablecoins.
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- Source: https://dailyhodl.com/2023/07/19/g20-urges-global-crypto-rules-to-put-end-to-regulatory-arbitrage-reuters/
