The recent crypto winter has confirmed our analysis of the structural weaknesses that already exist, says FSB Chair
The global oversight organisation Financial Stability Board, or FSB, proposed a comprehensive framework for crypto assets to manage any dangers and harness potential benefits of the technology.
The FSB invited public feedback on a potential crypto regulatory framework, including proposed policy measures, financial stability issues, and the methodology the organisation would employ to establish standards for digital assets, in a study published on October 11.
The FSB will present suggested proposals to the G20 finance ministers and central bank governors "to promote the coherence and comprehensiveness of regulatory, supervisory and oversight approaches to crypto-asset activities and markets," the study states.
The FSB proposal said, "Effective regulatory and supervisory frameworks should be based on the principle of 'same activity, same risk, same regulation. Where crypto-assets and intermediaries perform an equivalent economic function to one performed by instruments and intermediaries of the traditional financial sector, they should be subject to equivalent regulation."