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The Financial Stability Board Outlines 2024 Priorities for Crypto Asset Regulation
The Financial Stability Board (FSB) has recently detailed its top priorities for 2024, including crypto asset regulation, in a letter addressed to G20 members. This letter was shared by FSB Chair Klaas Knot ahead of the G20 finance ministers and central bankers meeting scheduled for February 28-29 in São Paulo, Brazil.
Key Focus Areas for 2024
In his letter, Knot outlined the priority areas for the FSB in 2024, which include non-bank financial intermediation, climate change, cross-border payments, asset tokenization, and AI.
Global Regulatory and Supervisory Framework for Crypto Assets
Last year, the G20 approved a global regulatory and supervisory framework for crypto assets, stemming from the G20 New Delhi Leaders’ Declaration passed in July. The FSB, in collaboration with the International Monetary Fund, introduced the roadmap for the framework in a Synthesis Paper and plans to issue a progress report on its implementation in October.
Standardizing Incident Reporting Processes
Knot also mentioned the FSB’s initiative to propose a standardized format for incident reporting, aiming to facilitate the simultaneous sharing of incident reports among various financial institutions and agencies. This effort is driven by the increasing interconnectedness of the global financial system due to digitalization, which raises the possibility of cyber or operational incidents having spillover effects across borders and sectors.
Anti-Money Laundering and Know Your Customer Focus
Addressing Anti-Money Laundering and Know Your Customer issues in cross-border payments is another area the FSB aims to focus on in 2024, in line with its efforts to enhance global financial stability.
With Brazil assuming the presidency of the G20 for 2024, the FSB’s work programme during the Brazilian G20 Presidency will be a key focus in the upcoming meetings of finance ministers and central bank governors.
The Financial Stability Board, established in 2009, comprises central banks and financial authorities from major economies and plays a vital role in monitoring and recommending policies to enhance global financial stability while identifying and addressing systemic risks.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
