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  <p class="is-style-lead">The Financial Stability Board (FSB) has completed its global regulatory framework for crypto asset activities, aiming to enhance the consistency and comprehensiveness of regulatory and supervisory practices on an international scale.&nbsp;</p> 
  <p>Built on the principle of ‘same activity, same risk, same regulation,’ this framework establishes a solid foundation for enforcing consistent and comprehensive regulations for crypto asset activities and stablecoins, taking into account the associated risks and fostering responsible developments.</p> 
  <h2 class="wp-block-heading" id="avoiding-conflicts-of-interest">Avoiding conflicts of interest</h2> 
  <p>On July 17, the Financial Stability Board (FSB), the world’s most known global financial watchdog group, released a <a href="https://www.fsb.org/2023/07/fsb-finalises-global-regulatory-framework-for-crypto-asset-activities/" target="_blank" rel="noopener noreferrer nofollow">public note</a> along with two <a href="https://www.fsb.org/wp-content/uploads/P170723-1.pdf" target="_blank" rel="noopener noreferrer nofollow">guideline documents</a>, focusing on the regulation of cryptocurrencies and global stablecoins.</p> 
  <p>The guidelines, which were initially suggested to be released in early 2023, encompass high-level recommendations for crypto regulation in general, as well as revised high-level recommendations specifically tailored for global stablecoins, which include stablecoins with cross-jurisdictional use.</p> 
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     <p lang="en" dir="ltr">Our global regulatory framework for crypto-asset activities seeks to ensure that <a href="https://twitter.com/hashtag/cryptoassets?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#cryptoassets</a> and global <a href="https://twitter.com/hashtag/stablecoins?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#stablecoins</a> are subject to robust regulation and supervision and do not pose risks to <a href="https://twitter.com/hashtag/FinancialStability?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#FinancialStability</a>.<br>Find out more: <a href="https://t.co/NZyA2rzF7K" target="_blank" rel="noopener noreferrer nofollow">https://t.co/NZyA2rzF7K</a> <a href="https://t.co/wH8z4Q0d8l" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/wH8z4Q0d8l</a></p>— The FSB (@FinStbBoard) <a href="https://twitter.com/FinStbBoard/status/1680894888806690819?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">July 17, 2023</a> 
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  <p>According to the FSB, it is crucial for crypto platforms to segregate clients’ digital assets from their own funds and establish clear functional separations to avoid conflicts of interest. Additionally, regulators must ensure close cross-border cooperation and oversight.</p> 
  <p>Addressing the topic of privacy, the FSB emphasizes the need for local regulators to prevent any activities that could impede the identification of responsible entities, including decentralized finance (defi) protocols.&nbsp;</p> 
  <p> You might also like: <a href="https://crypto.news/fsb-creates-new-tools-to-derisk-defi/" rel="noopener noreferrer nofollow"> FSB creates new tools to derisk defi </a> </p> 
  <p>It is also suggested that global stablecoin issuers may need to obtain permits to operate in each jurisdiction as an added level of authority oversight.</p> 
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   <div class="wp-block-embed__wrapper"> <iframe loading="lazy" title="Bloomberg investor briefing on the FSB's too-big-to-fail evaluation" width="1020" height="574" src="https://www.youtube.com/embed/-jBuyWT0ftM?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe> 
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  <p>Next steps for the FSB, will be to continue reviewing the global implementation of the recommendations outlined by the end 2025. As part of this step, they have also shared plans collaborate with the International Monetary Fund (IMF), the financial agency of the United Nations, to produce a report with current policies and challenges. Their joint findings will later be presented to the G20 in September of this year.</p> 
  <h2 class="wp-block-heading" id="a-firm-stance">A firm stance</h2> 
  <p>This announcement might seem is a positive step regulation, but FSB is not the determining factor in ensuring these regulations come to life. The board does not have direct regulatory authority over cryptocurrencies, although they are responsible for monitoring global financial markets and providing recommendations to the world’s largest economies, they are only recommendations.</p> 
  <p>Therefore, the body’s firm stance on regulating stablecoins, as highlighted by Terra (LUNA)’s example of a highly risky stablecoin that collapsed, are only guidance to global financial regulators, which will be assistance to formulating effective regulatory measures.</p> 
  <p> Read more: <a href="https://crypto.news/financial-stability-board-fsb-to-finalize-global-crypto-regulations-in-early-2023/" rel="noopener noreferrer nofollow"> Financial Stability Board (FSB) to finalize global crypto regulations in early 2023 </a> </p>
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FSB finally publishes global regulatory framework for crypto activities

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