Global watchdog FSB has called for reforms to privacy rules that hamper cross-border surveillance of digital assets.
Regulators continue to face obstacles in monitoring global crypto markets as privacy laws block effective cross-border data sharing, the Financial Stability Board has warned. Sixteen years after Bitcoin’s launch, regulation remains inconsistent, with different national approaches leading to data gaps and fragmented oversight.
The FSB, which is part of the Bank for International Settlements, said secrecy laws prevent authorities from monitoring risks and sharing information. Some jurisdictions block data sharing with foreign regulators, while others delay cooperation over concerns of confidentiality and reciprocity.
According to the report, overcoming these legal and institutional obstacles is essential to improve cross-border collaboration and ensure more effective global oversight of crypto markets.
However, the FSB noted that reliable data on digital assets remains scarce, as regulators rely largely on incomplete or inconsistent sources from commercial data providers.
Despite the growing urgency to monitor financial stability risks, little progress has been made since similar concerns were raised almost four years ago. The FSB has yet to present concrete solutions to bridge the gap between data privacy protection and effective crypto regulation.
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