Financial watchdog FSB to present crypto regulations plans in October

What

The Financial Stability Board (FSB), an international financial monitoring body will present its recommendations for crypto regulation in October

Why

Citing recent market turmoil, the regulatory body highlighted the need to ensure crypto is subject to robust regulation and supervision

What next

FSB Chairman Klaas Knot believes that the watchdog is “well placed” to take the lead in setting up a “coherent global regulatory framework for crypto assets.”

The story

The Financial Stability Board (FSB), an international body that monitors financial systems and proposes new rules to help prevent financial crises, has announced its plans to present its recommendations for regulating crypto in October.

The Switzerland-based organisation reports to the G20, a group of the world’s largest economies, and its recommendations will cover stablecoins and other crypto assets, according to the statement.

“The FSB is working to ensure that crypto-assets are subject to robust regulation and supervision,” the statement said, adding the recent “turmoil” in crypto markets highlights the intrinsic volatility and structural vulnerabilities as well as the increasing interconnectedness between crypto markets and the traditional financial system.

FSB Chairman Klaas Knot said in May that the watchdog is well placed to take the lead in setting up a coherent global regulatory framework for crypto assets.

The FSB is also planning to submit a report with recommendations that promote “international consistency of regulatory and supervisory approaches to crypto”.

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