Laura WilesFSB has published its finalised regulatory framework for the supervision of crypto-asset activities to promote the comprehensiveness and international consistency of regulatory and supervisory approaches globally.
FSB notes how the events from the past year have highlighted the intrinsic volatility and structural vulnerabilities of crypto-assets, and that the failure of a key crypto-asset service provider can quickly cause waves across other parts of that ecosystem.
G20 asked FSB to coordinate the delivery of an effective regulatory, supervisory and oversight framework for crypto-assets. The final framework comprises two sets of recommendations:
- Regulatory powers and tools
- General regulatory framework
- Cross-border cooperation, coordination and information sharing
- Governance
- Risk management
- Data collection, recording and reporting
- Disclosures
- Addressing financial stability risks arising from interconnections and interdependencies
- Comprehensive regulation of crypto-asset service providers with multiple functions
- Authorities’ readiness to regulate and supervise global stablecoin arrangements
- Comprehensive oversight of GSC activities and functions
- Cross-border cooperation, coordination and information sharing
- Governance structures and decentralise operations
- Risk management
- Data storage and access to data
- Recovery and resolution of the GSC
- Disclosures
- Redemption rights, stabilisation, and prudential requirements
- Conformance with regulatory, supervisory and oversight requirements before commencing operations