Bitcoin News and Finance
G20’s FSB Pushes for Global Crypto Regulations and Standards Aiming to Curb Crypto ‘Spillover’ Risks Skip to main content

G20’s FSB Pushes for Global Crypto Regulations and Standards Aiming to Curb Crypto ‘Spillover’ Risks

G20's FSB Pushes for Global Crypto Regulations and Standards Aiming to Curb Crypto ‘Spillover’ Risks

On Monday, the Financial Stability Board (FSB), a product of the G20 organization, unveiled its proposed guidelines for a global regulatory structure overseeing the operations of crypto assets. The international entity emphasizes that nations should confront the risks cryptocurrencies pose to global financial stability. The FSB contends that occurrences within the preceding year have underscored the “structural vulnerabilities of crypto assets and related players.”

G20’s Financial Stability Board Provides 9 Crypto Industry-Centric Recommendations for Countries and Standard-Setting Bodies

As stated in a newly published report, the G20’s Financial Stability Board (FSB) wants to rein in the crypto industry with tighter regulations and standardized frameworks. The FSB’s strategy for governing crypto asset operations hinges on encouraging collaboration between jurisdictional financial authorities and standard-setting bodies (SSBs). This cooperation aims to guarantee that such activities are governed by sturdy regulation and oversight matching the financial stability risks they pose, all while fostering responsible innovation.

The FSB has identified several notable failures within the crypto industry over the previous year, including the depegging event of Terra’s stablecoin and the implosion of FTX. “These events demonstrate interlinkages between crypto asset markets and the traditional financial system,” the authors of the FSB report outline. Nevertheless, the regulatory authority concedes that the impact on conventional finance was “limited” amid these two distinct incidents. Still, “interlinkages and possible spillovers between the crypto asset and traditional financial systems could markedly increase,” the FSB report explains.

The FSB further states:

These events have further highlighted that many crypto asset activities involve economic functions similar to those in traditional finance and should be comprehensively regulated and/or brought into compliance with new or existing rules as appropriate.

The FSB’s nine outlined recommendations stress that regulatory structures must also mandate that any crypto asset activities aiming to execute a similar economic role as those in the conventional financial system, are subject to identical or equivalent regulation. This should hold true regardless of how these crypto asset activities are carried out or the manner in which they are promoted, the report emphasizes. The FSB is of the opinion that the recommendations provide sufficient latitude for SSBs to formulate detailed standards tackling crypto sector-specific issues within their individual jurisdictions.

The FSB says the main concern is to “safeguard client assets,” remove “conflicts of interest,” from the sector, and establish “cross-border cooperation.” The FSB and the International Monetary Fund (IMF) “will deliver a joint report to the G20 in September 2023, which will synthesise the policy findings from IMF work on macroeconomic and monetary issues,” the FSB report concludes.

What do you think about the G20’s Financial Stability Board recommendations for the crypto industry? Share your thoughts and opinions about this subject in the comments section below.

Comments

Post a Comment

Popular posts from this blog

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl...
Post a Comment
Read more

Axie Infinity Down 40% Since Last Week’s Price High, Protocol Revenue Outshines Competitors

Last week, the game token leveraged within the Axie Infinity gaming universe skyrocketed to all-time highs, while other crypto markets remained extremely lackluster. During the last seven days, Axie Infinity’s platform token has dropped significantly in value shedding more than 12%. Meanwhile, the game platform’s smooth love potion token has slid over 8% over the last 24 hours. Axie Infinity Down More Than 40% Since All-Time High Not too long ago, the axie infinity (AXS) token was a topical conversation because it reached an all-time high on July 15. At the time, AXS managed to capture $28.93 per unit and since then it has shed 12.8% during the last seven days. The axie infinity (AXS) token is used within the blockchain-based game that involves battles between token-based creatures called “Axies.” AXS is used for the game’s governance system as well as other actions within the game. At the time of writing axie infinity (AXS) is exchanging hands for $16.70 per coin. AXS/USD on Ju...
Post a Comment
Read more

Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon

The Play-to-Earn NFT based Polker.Game ‘s native token $PKR has been officially listed on the popular centralized exchange BitMart. Polker.game has been in the spotlight recently as Akon, the American R&B superstar and record producer gave his official endorsement of polker stating that the “game is revolutionary” and that Polker is “hands down.. the best play to earn, NFT game in the space.”. With the BitMart listing and celebrity endorsement from Akon, Polker is perfectly positioned to become a major player in the Play-to-Earn league. Watch Akon’s Video Here What is Play-to-Earn? Although not a new concept, play-to-earn has become a trending term due to the popularity of the NFT game AXIE infinity. In the past, previous play-to-earn games have also achieved success – however, thanks to the huge amount of development in the blockchain space in recent years the gaming experience is now massively improved. Play-to-Earn games are essentially free to play and open to anyone and...
Post a Comment
Read more

China to Crack Down on Copyright Infringement Through NFTs

Authorities in China are going after creators of digital collectibles based on other people’s works of art, the use of which was not authorized. The government offensive is part of a campaign to combat online copyright infringement and piracy with the participation of several departments. Regulators in China Move to Strengthen Copyright Supervision of Online Platforms The National Copyright Administration of China (NCAC) has recently launched a campaign against copyright infringement and piracy on the internet, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office of the People’s Republic. A major objective of the initiative is to improve copyright supervision of online businesses by investigating cases involving the sale and distribution of infringing products on short video, live broadcast and e-commerce platforms, and promptly dealing with infringing content, the agency announced in a press r...
Post a Comment
Read more
Blogarama - Blog Directory