FSB to develop incident reporting standard for banks working with cryptocurrencies

The organization once again pointed to the threat to financial stability from crypto assets

27.02.2024 - 08:05

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3 min

What’s new? The Financial Stability Board (FSB) will develop a global incident reporting standard for institutions working with cryptocurrencies. The initiative will be part of the roadmap for crypto regulation adopted by the G20 countries last year. The standard will allow institutions to share incident information simultaneously with other banks and financial regulators.

Source: Twitter.com

What else is known? As FSB chair Klaas Knot writes in a letter to finance ministers and central bank governors of G20 member countries, the acceleration of digitalization in all areas of the financial system has increased its efficiency, but it has also increased the interconnection of its elements.

This situation increases the likelihood that an operational or security incident in one financial institution will have a negative impact on firms in other sectors of the system, regardless of their location, he said.

The roadmap for implementing a global regulatory and supervisory framework for crypto assets was developed by the FSB in conjunction with the International Monetary Fund (IMF) and adopted by G20 leaders at the New Delhi summit last October.

FSB in its working program named the implementation of cryptocurrency regulation as a priority in 2024. According to the program, in October and November, the board will present reports on the implications of tokenization and the development of AI technologies for financial stability.

Earlier, global securities regulator IOSCO published recommendations on controlling the work of crypto companies. The document covers such aspects as conflicts of interest, market manipulation, insider trading, and fraud, as well as custody and protection of client assets.

UK regulator approved only 4 out of 28 crypto license applications in 2023

Earlier, several exchanges suspended their activities in the country due to stricter rules for the promotion of cryptocurrencies

In January, IMF chief Kristalina Georgieva questioned bitcoin’s ability to replace the US dollar as the dominant currency. She believes that BTC is an asset and not money. Earlier, Morgan Stanley said that the introduction of BTC and CBDC threatens the leadership of the dollar.

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