G20 Watchdog announces ‘robust’ global cryptocurrency regulation coming in October – Bitcoin News Regulation

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

The FSB presents a robust cryptographic regulatory framework for the G20 in October

The Financial Stability Board (FSB), an international body that monitors and makes recommendations on the global financial system, issued a statement on Monday on “international regulation and supervision of cryptocurrency activities.”

The G20 watchdog stated that it is committed to promoting the “international consistency of regulatory and supervisory approaches among national authorities and international standard-setters as they work to develop risk-based, technology-neutral policies for the broad spectrum of cryptocurrencies, based on the principle of” same, activity “. , same risk, same regulation. “

The FSB noted that cryptocurrencies, including stack coins, are evolving rapidly, explaining that the recent turmoil in crypto markets “may have ripple effects on key parts of traditional finance such as short-term finance markets.” The organization said in detail:

An effective regulatory framework must ensure that cryptocurrencies that pose a risk similar to traditional financial activities are subject to the same regulatory outcomes, while taking into account new features of cryptocurrencies and exploiting potential benefits of the technology behind them.

“Crypto-assets and markets must be subject to effective regulation and supervision that are proportionate to the risk they pose, both at national and international level,” the FSB elaborates.

Furthermore, crypto service providers must “at all times ensure compliance with existing legal obligations in the jurisdictions in which they operate,” said the Financial Stability Watchdog.

The statement continues:

The FSB works to ensure that cryptocurrencies are subject to robust regulation and supervision.

“The FSB will report to the G20 finance ministers and central bank governors in October on regulatory and supervisory approaches to stack coins and other cryptocurrencies,” the watchdog concluded.

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

Last week, the US Treasury Department sent a crypto framework for international engagement to President Joe Biden as instructed in the executive order issued in March.

What do you think about the FSB working to ensure that cryptocurrencies are subject to robust regulation and supervision? Let us know in the comments section below.

Kevin Helms

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