#CryptoRegulation

The Financial Stability Board (FSB) has finalized a global regulatory framework emphasizing:

• Same Activity, Same Risk, Same Regulation: Ensuring crypto activities are regulated equivalently to traditional finance based on risk exposure.

• Stronger Governance and Risk Management: Mandating robust governance structures and risk frameworks for crypto firms, including clear lines of accountability and comprehensive risk management policies.

• Segregation of Client Assets: Requiring crypto platforms to separate client assets from their own funds to prevent misuse and protect investors.

• Cross-Border Cooperation: Enhancing international coordination and information sharing to oversee crypto markets effectively and mitigate systemic risks.

• Stablecoin Oversight: Implementing strict requirements for global stablecoins, including 1:1 reserve backing, redemption rights, and transparent governance structures.

These measures aim to address vulnerabilities exposed by past crypto market disruptions and to integrate crypto assets safely into the broader financial system.