Financial Stability Board (FSB) under the group G20 developed recommendations for a global regulatory framework for cryptocurrencies.
The document consists of two sets of recommendations:
- high-level regulation of digital assets in general;
- revised high-level recommendations for a “global stablecoin”.
According to the document, any issuer of a stablecoin must have one or more identifiable and responsible legal entities or individuals – a “governing body”. He is required to have reserve assets at a minimum ratio of 1:1 and have permission to work in each individual jurisdiction.
According to the FSB, crypto platforms should separate digital assets of clients from their own funds and clearly separate their functions in order to avoid conflicts of interest. Regulators, in turn, are obliged to ensure cross-border cooperation in the issue of supervision of industry participants.
The guide is recommended to 20 of the world’s leading economies and is built on the principle of “same activity, same risk, same regulation.” By the end of 2025, the FSB intends to review the status of implementation of the recommendations worldwide.
Previously, an advisory body to the G20 concluded that none of the existing stablecoins meet the standards set for digital assets by the central banks of the largest economies.
Recall that in December 2022, the FSB announced proposals for regulating the crypto market with a specific schedule for their implementation. The FTX collapse was the catalyst for the initiative.
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