The Financial Stability Board (FSB), the global financial regulator, is all set to propose “robust” crypto regulations to the G-20 in October.
“The FSB will report to the G20 Finance Ministers and Central Bank Governors in October on regulatory and supervisory approaches to stablecoins and other crypto-assets,” says the FSB.
The FSB is concerned about Bitcoin’s (BTC) 70% price drop from its peak of $69,000 in November to little under $20,000. Bitcoin’s debacle coupled with TerraUSD, Celsius Network, and Voyager Digital episodes prompt the FSB to ensure stablecoins’ stability.
“Stablecoins should be captured by robust regulations and supervision of relevant authorities if they are to be adopted as a widely used means of payment or otherwise play an important role in the financial system,” notes FSB’s statement.
The global financial regulator is finally bracing to address the Cryptoverse’s pressing fluctuations and instability concerns.
“The failure of a market player, in addition to imposing potentially large losses on investors and threatening market confidence arising from crystallisation of conduct risks, can also quickly transmit risks to other parts of the crypto-asset ecosystem,” the FSB states.
The FSB has no lawmaking powers, however, “FSB members are committed to using the enforcement powers within the legal framework in their jurisdiction to promote compliance and act against violations,” says the FSB.
The FSB opines cryptocurrencies do not function in a “regulation-free space,” making its compliance with the applicable rules vital.
A potential submission of a public consultation report that recommends “promoting international consistency of regulatory and supervisory approaches to other crypto-assets,” is in the works, as well.
Also Read: EU Agrees on MiCA Regulation for Crypto Assets & Stablecoin
