The Financial Stability Board (FSB) prepared recommendations for the G20 member countries on forming a global regulatory framework for activities related to cryptocurrency assets.
Twenty of the world’s leading economies received two sets of recommendations from the FSB — for digital assets and for stablecoins that can be used in multiple jurisdictions. The basic principle of regulation is stated as follows: “same activity, same risk, same regulation.”
In the context of the global crypto market, national regulators are advised to emphasize asset management on the part of cryptocurrency platforms. The main risks here are the commingling of corporate and client funds and conflicts of interest. The regulators should ensure cross-border cooperation and supervision of the sphere.
According to the FSB, national regulators should have access to personal data and be able to identify the responsible person or affiliates related to the activities of DeFi protocols.
Similar requirements are imposed on stablecoin issuers that must have one or more identifiable and responsible legal or natural persons forming governing bodies. Minimum reserve assets are required to be 1-to-1 unless the issuer falls under the prudential requirements applicable to commercial banks. Additionally, issuers must be licensed to operate in each of the jurisdictions where their stablecoin is introduced.
The FSB plans to present its report on the existing policy and regulation of the cryptocurrency market to the G20 together with the International Monetary Fund in September 2023. And the realization of the current recommendations is planned to be analyzed by late 2025.
In February 2023, the Financial Stability Board called for the creation of international rules for the decentralized finance (DeFi) market, which primarily concerned the use of stablecoins.
