Since August, jurisdictions have made progress in regulating crypto-asset activities, made less progress in regulating global stablecoin agreements, and left gaps and inconsistencies that “could pose risks to financial stability and to the development of a resilient digital asset ecosystem,” the FSB said in a statement. press release describing the conclusions of his peer review progress made in implementing the 2023 global framework.
“The FSB urges jurisdictions to prioritize comprehensive and consistent implementation, to minimize the risk of regulatory arbitrage and improve oversight of an inherently global crypto-asset market,” the statement said.
The 2023 Global Framework includes recommendations on crypto-asset service providers and stablecoin agreements, reporting and data collection, And cross-border cooperation and coordination, according to the press release.
Gaps and inconsistencies noted in the peer review arrive where finalized regulatory frameworks are not fully aligned with FSB recommendations, the communiqué said.
Outstanding questions identified during the peer review include jurisdictions’ progress in the implementation, completeness and consistency of THE implementation, as well as cross-border cooperation and coordination, according to the press release.
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“Implementation progress remains incomplete, uneven and inconsistent. » Arthur Yuendeputy general director of Hong Kong Monetary Authority and chair of the team that prepared the report, said in the statement. “This creates opportunities for regulatory arbitrage and complicates oversight of the inherently global and evolving crypto-asset market.”
The FSB brings together national authorities responsible for financial stability in 24 countries and jurisdictions, and conducts outreach to approximately 70 other jurisdictions, according to the press release.
When the FSB unveiled the global framework for cryptocurrency in 2023, PYMNTS reported that the guiding principle was “same business, same risk, same regulation.”
The FSB said at the time that the framework “provides a strong basis for ensuring that activities relating to crypto-assets and so-called stablecoins are subject to consistent and comprehensive regulation, appropriate to the risks they pose, while supporting responsible innovations potentially brought about by technological change.”
