According to Switzerland-based Financial Stability Board’s Chairman Klaas Knot, the FSB could take the lead in constructing a global rulebook for crypto assets.
At the annual meeting of the International Swaps and Derivatives Association in Madrid, Knot stated “The FSB is well placed to take a leading role in the design of a coherent global regulatory framework for crypto assets.”
The FSB reports to the Group of 20 world’s largest economies and creates rules to prevent crises like the one that occurred in 2008, such as those governing big global banks considered too big to fail.
Klaas Knot seemed to be responding to calls from jurisdictions such as the European Union for an international framework for the sector, similar to the global standards enacted for banks and the financial system during the financial crisis of 2008.
The rulebook creation wouldn’t have to start from the ground up, and would instead take into account existing crypto rules, according to Knot.
Knot added that “This will provide a basis for additional work to address risks not covered by these pre-existing standards. Crypto asset markets of today are not operating in a lawless environment, or a barren regulatory landscape.”
In February, the FSB issued a caution about the risk that a burgeoning and largely unregulated sector poses to investor trust and financial crime, and is expected to release a study on stablecoins in October.
All the regulatory authorities around the world are trying to tackle the crypto industry’s exponential growth, brainstorming ideas to establish a proper regulatory framework. Just a day back, the U.S. Treasury Secretary Janet Yellen urged for stablecoin regulation by the end of the year citing the latest UST crisis in the market.
