Financial Stability Board Publishes New Report On Crypto Regulations

News, Regulation | June 3, 2019 By:

The Financial Stability Board (FSB), an international body that monitors the global financial system, has published a new report on crypto regulations.

Titled “Crypto-assets: Work underway, regulatory approaches and potential gaps,” the report said that standard-setting bodies (SSB) and other international organizations are working on a number of fronts, directly addressing issues arising from crypto-assets, including investor protection, market integrity, anti-money laundering, bank exposures and financial stability monitoring.

The FSB noted that regulatory approaches towards crypto-assets vary across jurisdictions. Several authorities have made announcements concerning cryptoassets or taken specific policy actions, while others have banned crypto-assets outright. According to the regulator, these differences reflect a number of factors, including national market developments or underlying legal and regulatory frameworks for the respective financial systems. The lack of a uniform taxonomy across jurisdictions may also contribute to differences.

“Assessing the significance of potential gaps is challenging, given the rapidly evolving nature of the crypto-asset ecosystem and related risks,” the FSB said. “A forward-looking approach to monitoring crypto-assets can help provide a basis for identifying potential gaps and areas that should be prioritized or focused on.”

The FSB recommends that the G20 Finance Ministers and Central Bank Governors keep the topic of regulatory approaches and potential gaps, including the question of whether more coordination is needed, under review.