The regulations termed as ‘robust’ have been necessitated by the recent cryptocurrency sector turmoil that saw most investors incur significant losses, Reuters reported on July 11. Before working on unveiling crypto regulations, the FSB has in the past mainly focused on monitoring the sector.
Focus on stablecoins
According to the FSB, part of the regulations will mainly focus on offering a guideline for managing stablecoins. This comes following the collapse of the Terra (LUNA) ecosystem that has contributed to the crypto market turmoil. It is worth noting that despite proposing regulations for the crypto sector, the FSB has no lawmaking mandates. However, its member states can commit to applying the proposed regulations. Notably, the FSB has been engaging with other global agencies to deploy a uniform crypto regulatory framework. As reported by Finbold, the entity is working with the International Organization of Securities Commissions (IOSCO) on releasing a global regulation plan by next year. The cooperation between the agencies is tied to the cross-border nature of cryptocurrencies. Despite pushing for crypto regulations, the FSB has maintained that any laws should uphold the innovative nature of the sector.
