Financial Stability Board calls for greater oversight of crypto, stablecoin

The Financial Stability Board today called for stricter regulation and supervision of cryptoasset activities, saying that recent turmoil in crypto markets demonstrated the need for “enhancements” in key policy areas. The board released a series of recommendations for cryptoasset and stablecoin regulation as part of a global framework to promote international consistency of regulatory and supervisory approaches for digital assets. The recommendations “take account of lessons from events of the past year in cryptoasset markets, as well as feedback received during the public consultation of the FSB’s proposals,” it said.

Among the recommendations, the FSB said oversight of cryptoasset activities and markets—including cryptoasset issuers and service providers—should be proportionate to the financial stability risk they pose, incorporating the principle of “same activity, same risk, same regulation.” Authorities should require cryptoasset service providers to have a risk management framework in place that comprehensively addresses all material risks associated with their activities, as well as require both service providers and issuers to have “robust frameworks” for safely storing and reporting data, the board said. Authorities should also adopt reporting requirements for crypto firms, it added. The FSB had similar recommendations for oversight of global stablecoin arrangements.