Global rules proposed for crypto asset firms

economictimes.indiatimes.com:

Financial Stability Board Monday proposed global rules for crypto firms mandating introduction of safeguards to prevent casualties such as exchange collapse. The recommendations, issued at the direction of G20, also revised its existing recommendations for stablecoins. The FSB published the final proposals requested by the G20 on supervising firms that trade cryptoassets such as bitcoin.

However, the recommendations focus on risks to financial stability and do not comprehensively cover all specific risk categories related to crypto asset activities. The proposed rules may not meet India's expectations that has been pushing for tighter regulation in the wake of their use in money-laundering. New Delhi has maintained that there should be a global framework to ensure tighter vigil to prevent their use in these activities including terror financing.

The proposed rules are expected to figure in discussions at the ongoing G20 finance ministers and central bank governors meeting here. «As recent events have illustrated, if linkages to traditional finance were to grow further, spillovers from cryptoasset markets into the broader financial system could increase,» the FSB said. In October 2022, the FSB published a proposed framework for the international regulation of crypto-asset activities, in the form of two separate sets of recommendations, for a public consultation that ran until 15 December 2022.