Financial Stability Board finalises global regulatory framework for crypto assets

Moreover, the framework underscores the importance of countries having the capability to take corrective actions if crypto issuers fail to comply with the established rules. This provision intends to maintain accountability and uphold the integrity of the crypto asset market.

In a bid to enhance transparency and foster international cooperation, countries with large crypto exchanges are urged to share information with other nations. This measure is expected to improve the overall supervision of crypto asset activities and facilitate the identification of potential risks on a global scale.

One of the significant aspects of the framework pertains to the accountability and risk management of crypto asset issuers. Clear and direct lines of accountability are essential to ensure that these issuers can effectively manage and mitigate potential risks associated with their activities.

The framework also places specific emphasis on stablecoin arrangements. Stablecoins, which are crypto assets pegged to a specific fiat currency or basket of assets, must adhere to strict disclosure and redemption norms. These requirements aim to safeguard the stability and integrity of stablecoin arrangements, which have gained significant popularity in recent years.

By finalising this global regulatory framework, the FSB aims to enhance the overall stability and resilience of the financial system in the face of the evolving crypto-asset landscape. The framework's focus on accountability, risk management, transparency, and international cooperation sets a strong foundation for regulating crypto asset activities in a manner that aligns with traditional financial markets.