In line with India's pledge to develop a framework to regulate the digital asset industry, the FSB, IMF, and BIS will submit recommendations to G20, focusing on countering risks tied to the assets.
The Financial Stability Board is set to publish recommendations for stablecoin regulations this year, and it says most existing stablecoins fall short of these proposed standards.
India is mulling a partnership with the International Monetary Fund (IMF) and the Financial Stability Board (FSB) in its quest for an international regulatory framework.
The Financial Stability Board has previously adopted a passive stance on the asset class, stating that while digital assets are inherently risky, they do not pose significant risks to the broader financial markets.
The FSB encourages the public to share their views on the new framework of applying banking regulations to the digital asset industry.
The finance ministry and the Reserve Bank of India are reportedly in agreement that banning non-custodial digital asset wallets without international coordination will be an effort in futility.
The Financial Stability Board has stayed away from the industry but says the recent Terra debacle has made it rethink its stand as it called for strict oversight over Bitcoin.
The G7 inter-governmental political forum is the latest global body to highlight the need for digital currency regulations, imploring the FSB to establish the regulations quickly.
The Bank of England is seeking to partner with its international counterparts to put in place stricter regulations for digital currencies, a top central bank official has revealed.
In this week’s CoinGeek Pulse, Shenzhen residents receive digital yuan in People’s Bank of China’s red packet giveaway, G20 wants to set standards for sovereign digital currencies, and James Belding gave an online demonstration of the Tokenized platform.
While recognizing the rise in prominence of CBDCs, the Financial Stability Board is challenging the effectiveness and comprehensiveness of the existing financial regulations.
The Financial Stability Board published a list of recommendations in a bid to shape a common global response to regulating stablecoins.
