G20 Regulators Announce New Global Cryptocurrency Regulations

On Monday, the Financial Stability Board (FSB) announced now global regulations for cryptocurrencies and will report to G20 central banks and finance ministers in October on regulatory and supervisory approaches to stablecoins and further crypto assets.

The recent market turmoil was cited as evidence of the risk to financial stability by a group of regulators, government officials and central bankers, emphasizing that the failure of a market player to fail other parts of the ecosystem. can transmit risk quickly and have traditionally had a spillover effect. finance. The FSB statement specifically included “so-called” stable coinsWhich has been on the agenda of many financial regulators since before the Terra meltdown in May.

TeaHe’s Been Looking Into The FSB Cryptocurrency For Some Time

The FSB is a Swiss-based multinational organization that manages and supports financial stability around the world. Its members include national authorities and central banks from 24 countries, including the United States, Russia and China, and it works with another 70.

While it is emphasizing the current market difficulties as a reason to act, the FSB is looking at cryptocurrency For some time. It produced a paper in February examining the threats posed by crypto assets, stating that their scale, structural vulnerabilities and increasing interconnectedness with the traditional financial system could threaten global financial stability.

Crypto assets may one day represent a risk to the larger financial system

The position of the FSB is in line with recent observations by senior finance officers and committees. The Bank of England’s Financial Policy Committee warned on 5 July that crypto assets could one day represent a risk to the larger financial system and called for “increased regulation”. This attitude was shown last Friday by US Federal Reserve Vice President Lyle Brainard, who said the industry needed a “tighter railing”.