Global Financial Stability Watchdog FSB Says It Could Write Crypto Rulebook

The Financial Stability Board joins tax and money-laundering bodies in responding to calls for coordinated international action to regulate the industry.

AccessTimeIconMay 11, 2022 at 9:00 a.m. UTC
Updated May 11, 2022 at 3:24 p.m. UTC

Jack Schickler is a CoinDesk reporter focused on crypto regulations, based in Brussels, Belgium. He doesn’t own any crypto.

The Financial Stability Board (FSB) could lead on formulating global regulations to cover crypto assets, its chair, Klaas Knot, said.

"The FSB is well placed to take a leading role in the design of a coherent global regulatory framework for crypto assets," Knot said at the annual meeting of the International Swaps and Derivatives Association in Madrid.

The Basel, Switzerland-based FSB reports to the Group of 20 of the world's largest economies, and develops rules intended to stop 2008-style crises such as those applying to major international banks deemed too big to fail.

The Dutch central banker appeared to respond to a call from jurisdictions such as the European Union for an international framework for the sector, mirroring the kind of global rules brought in for banks and the financial system after 2008.

The FSB, which in February warned about the risk a growing and largely unregulated sector could pose for investor confidence and financial crime, is due to produce a report on stablecoins in October. It would join international standard-setters such as the Financial Action Task Force and OECD, which are respectively responsible for developing anti-money laundering and tax rules for the sector.

It wouldn't have to start from scratch, Knot said, and would first consider the existing laws that already apply to crypto.

"This will provide a basis for additional work to address risks not covered by these pre-existing standards," he said. "Crypto asset markets of today are not operating in a lawless environment, or a barren regulatory landscape."

Earlier this month, the EU's financial services commissioner, Mairead McGuinness, called for a "global agreement on crypto" to protect investors, safeguard stability and limit the environmental impact of bitcoin (BTC) mining, and she seems to have found support within the bloc.

Global rules are "the right idea," EU lawmaker Stefan Berger, architect of the bloc's domestic crypto law known as MiCA, said at an event in Brussels Monday. "We need, in the end, worldwide regulation."

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Jack Schickler is a CoinDesk reporter focused on crypto regulations, based in Brussels, Belgium. He doesn’t own any crypto.

CoinDesk - Unknown

Jack Schickler is a CoinDesk reporter focused on crypto regulations, based in Brussels, Belgium. He doesn’t own any crypto.

Investing in the Future of the Digital Economy
October 18-19 | Spring Studio, NYC