In October 2022, the Financial Stability Board (FSB) under the G20 group will make recommendations on the regulation of cryptocurrencies.

“Crypto-assets, including stablecoins, are evolving rapidly. The recent turmoil in the digital currency markets highlights their inherent volatility, structural fragility, and increased interconnectedness with the traditional financial system,” the organization said in a statement.

The FSB noted that losses from crypto investors threaten to “infect” some traditional financial markets, such as the short-term lending space.

According to the organization’s experts, crypto assets “must be subject to effective regulation and control commensurate with the threats they pose, both internally and externally.”

The FSB believes that the current general rules and regulations for financial markets apply to digital assets.

“Cryptocurrencies are predominantly used for speculative purposes and often fall outside of financial guarantees that those involved in transactions need to be fully aware of,” the FSB experts said.

In October, they said they will offer a “robust approach to the regulation and control of stablecoins and other crypto assets.”

“The FSB will also release a public consultation report that will provide recommendations to foster a coherent international approach to oversight of crypto-asset markets and strengthen cooperation and coordination. This collaborative effort between the FSB and global standard-setting bodies aims to minimize risk fragmentation and regulatory arbitrage. “, – noted the experts of the organization.

Recall that in October 2021 the FSB formulated ten recommendations for a common international approach to the regulation of stablecoins.

Sandra

I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.