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17/06/24
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FSB to Continue Monitoring Implementation of Recommendations to Deal With Crypto Risks
Three days ago, the Financial Stability Board (FSB) published a press release noting a plenary meeting to discuss follow-up work to the lessons learned from the banking sector upset as well as the global financial stability’s outlook.
Likewise, they discussed the board’s deliverables for the G20 Finance Ministers and Central Bank Governors meeting scheduled for July. The board is responsible for monitoring the international financial system for systemic risk.
The plenary involved discussions regarding the implementation of the board’s international regulatory framework for activities related to cryptocurrency assets. Progress made in terms of the implementation of the board’s recommendations to address the financial stability risks associated with cryptocurrency assets was welcomed.
The recommendations were provided last year, aimed at promoting the comprehensiveness and global consistency of regulatory and supervisory approaches. They considered lessons from the events of 2022 in cryptocurrency asset markets and feedback received during the public consultation of the board’s proposals.
“The FSB will continue to closely monitor implementation, not only in FSB member jurisdictions but also in jurisdictions beyond the FSB. Given the particularly acute risk of regulatory arbitrage in the crypto space, broad global implementation is crucial,” reads the June 14 press release.
Further, the plenary discussed recent developments in cryptocurrency asset markets as well as areas requiring further attention. They specifically considered how cryptocurrency assets are presenting certain challenges for monetary policy and capital flow management in emerging market and developing economies (EMDEs).
“Members discussed the challenges posed by the relatively higher levels of adoption and risks of global stablecoin arrangements in EMDEs. The FSB will undertake further work to consider how these challenges can be addressed,” reads the press release.
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