In particular, the FSB advised that crypto regulations should be comprehensive and uniform across all jurisdictions but aim to protect innovations in the sector, the agency said in the framework published on October 11. At the same time, the FSB acknowledged that the laws should focus on building the sector’s technology while borrowing a leaf from the traditional financial industry.
Stablecoin regulations
Elsewhere, the agency recommends regulating stablecoins, especially after the collapse of the Terra (LUNA) ecosystem crash. The framework notes that policymakers should fully ensure stablecoinS issuers back their assets to prevent failure. Following the framework’s release, members of the public have an option to share their views by December 15, with FSB noting that the aim is to attain consistency in regulations.
Increased pressure to regulate crypto
Notably, the FSB has accelerated its calls for global crypto regulations by urging different jurisdictions to collaborate on a working framework. The calls have come amid the widespread 2022 crypto market correction. As reported by Finbold, the FSB noted that the need for regulation is due to the unreliability of digital assets. According to the body, cryptocurrencies are an ‘unreliable store of value’ hence the need for ‘robust regulation.’ It is worth noting that different jurisdictions are unveiling drafts to regulate the sector led by the United States and the European Union. Recently, the EU passed the Markets in Crypto-Assets (MiCA) laws for managing the crypto space.
