In an increasingly digitalized financial world, overall financial stability remains a major challenge. It is in this context that the Financial Stability Board (FSB), under the chairmanship of Klaas Knot, is proposing a bold initiative to strengthen the security and transparency of cryptocurrency transactions and activities on an international scale.
An initiative supported by the G20
The adoption last October of the Crypto Route by the G20 marks a decisive turning point in the regulation of digital assets. This action plan, developed in collaboration with the International Monetary Fund, aims to establish a global regulatory and supervisory framework for crypto-assets.
Focus on tokenization and digital innovation
The FSB focuses on several key areas, including asset tokenization and digital innovation. In 2024, reports on the financial stability implications of asset tokenization and artificial intelligence will be delivered, promising to provide valuable insights into these evolving technologies.
An incident report format for better collaboration
One of the FSB’s major proposals is the standardization of an incident reporting format. This approach aims to facilitate the exchange of information on incidents between multiple financial institutions and agencies, thereby strengthening the resilience of the overall financial system to the risks of cyberattacks and other operational incidents.
Fight against money laundering and terrorist financing
The FSB does not forget the challenges of combating money laundering and terrorist financing, integrating these crucial aspects into its work on cross-border payments. This comprehensive approach ensures constant attention to the risks associated with crypto-assets, while promoting their secure integration into the global financial system.
Strengthened international cooperation
The FSB initiative is part of a broader movement of international cooperation between financial regulators. Indeed, the G20, including 19 countries, the European Union and the African Union, plays a key role in this process, with Brazil assuming the presidency for this year, succeeding India which was the first leader of the G20 to emphasize the need for global crypto regulation.
Conclusion
The FSB’s commitment to standardizing incident reporting for institutions with crypto is a significant step towards a more secure and transparent financial system. This approach, supported by the G20, demonstrates the growing recognition of the importance of regulating and supervising digital assets on a global scale. As the cryptoasset landscape continues to evolve, these initiatives are essential to ensuring financial stability and protecting investors across the world.
