The Financial Stability Board (FSB) has finalised a global regulatory framework for crypto-asset activities. The same consists of two sets of recommendations, one for the regulation of crypto-asset activities and markets and the other for that of global stablecoin arrangements.
It is based on the principle of “same activity, same risk, same regulation” and contains recommendations pertaining to governance, cross-border cooperation, risk management, disclosures, etc.
Earlier, the G20 had asked the Board to come up with a regulatory mechanism for crypto-assets. Accordingly, a proposed framework was made available to the public in the previous year. The responses received during the consultation process have been taken into account in formulating the recommendations.
The press release dated July 17, 2023, states that the recommendations seek to address the risks to financial stability but do not comprehensively cover all the specific risk categories related to crypto-asset activities.
However, it is specified that the framework would not apply to Central Bank Digital Currencies (CBDCs).