Financial Stability Board (FSB) Publishes Crypto Regulation Framework Report

investopedia.com:

The G20’s Financial Stability Board (FSB), a global financial authority, has published a report for an international level of regulation for the cryptocurrency market. The FSB says that the crypto market is evolving fast and that it has come to the point where more focused regulation is necessary. The global watchdog has posted a list of questions and is inviting public comments until December 15.

The two-day meeting of the G20 began on October 12 in Washington, focusing on cryptocurrency markets, especially volatile stablecoins. The FSB believes that the crypto market could represent a threat to global financial stability due to its “scale, structural vulnerabilities, and increasing interconnectedness with the traditional financial system.”

Speaking of a broad regulatory framework for the crypto asset class, the global watchdog says, “An effective regulatory framework must ensure that crypto-asset activities are subject to comprehensive regulation, commensurate to the risks they pose, while harnessing potential benefits of the technology behind them.”

The report focuses on the key issues and challenges of developing comprehensive regulation and policy initiatives at the jurisdictional and international levels. It also considers a possible approach to establishing a regulatory framework.

It is also seeking public comments on the report, asking all interested stakeholders to participate. This includes a set of questions that covers the matter of global stablecoins. This will be open until December 15.

The FSB’s report comes after it announced its plans to tackle regulating the crypto market in July 2022, in which it talked about the need to address stablecoins. It also published a report in February 2022 about how crypto