In the latest example of growing cryptocurrency oversight in the Europe, Middle East and Africa (EMEA) region, the Financial Stability Board will propose crypto regulations in October to add regulatory teeth to the sector, according to a board press release Monday (July 11).
The board monitors the global financial system, and while it plans to create local regulations in this case, it pushed for oversight of cryptocurrency and digital assets that covers all parts of the world in the release.
“FSB members support the full and timely implementation of existing international standards,” the release stated. “FSB member authorities will implement applicable international standards into national regulatory and supervisory frameworks to the extent not already reflected, such as FATF Recommendation 15 (e.g., registration/licensing from AML/CFT standpoint) and FATF Recommendation 16 (travel rule), and will adopt guidance, recommendations and best practices of international standard-setting bodies, as appropriate.”
The FSB will submit a report containing its recommendations for the regulation, supervision and oversight of so-called global stablecoin arrangements to the G20 finance ministers and central bank governors, per the release, including how existing frameworks can be updated and extended to close unintended gaps in the regulatory sphere.
The board will also offer up a public consultation report that “proposes recommendations for promoting international consistency of regulatory and supervisory approaches to other crypto-assets and crypto-asset markets and strengthening international cooperation and coordination,” according to the release.
Last week, Treasury Secretary Janet Yellen sent a report to President Joe Biden suggesting that more engagement with foreign counterparts and in international organizations is needed if the United States wants to make sure that digital assets around the world respect America’s core values and the country contributes to set international standards.
