Featured Product

    FSB Report Assesses Implementation of Recommendations on Stablecoins

    October 07, 2021

    The Financial Stability Board (FSB) published a progress report on implementation of its high-level recommendations for the regulation, supervision, and oversight of global stablecoin arrangements. The report discusses key market and regulatory developments since the publication of the recommendations in October 2020 and takes stock of the implementation of the recommendations across jurisdictions. The report also describes the status of existing standard-setting body frameworks, standards, guidelines, and principles in light of the recommendations and concludes with an identification of the consideration areas for further international work.

    The report takes stock of the implementation of the high-level recommendations in 48 FSB jurisdictions, covering 21 advanced economies and 27 emerging market and developing economies. The report notes that the market capitalization of existing stablecoins has continued to grow during 2020-21. However, the implementation of the FSB high-level recommendations across jurisdictions is still at an early stage. Jurisdictions have taken, or are considering, different approaches toward implementing the recommendations. The report notes that standard-setting bodies—including the Basel Committee on Banking Supervision (BCBS), the Committee on Payments and Market Infrastructures (CPMI), and the International Organization of Securities Commissions (IOSCO)—are assessing whether and how existing international standards and principles may apply to stablecoin arrangements and, where appropriate, are adjusting them in the light of the recommendations.

    The report emphasizes that a number of issues may not be fully covered by ongoing work and that any gaps in existing standards and principles should be addressed holistically, with coordination across sectors. Authorities have identified several issues with respect to the implementation of the recommendations and further work at the international level could be useful in the identified areas; these include conditions for qualifying a stablecoin as a “global stablecoin”; prudential, investor protection, and other requirements for issuers, custodians, and providers of other global stablecoin functions; redemption rights; cross-border and cross-sectoral cooperation and coordination; and mutual recognition and deference. Further work on these issues at the international level may help to support effective implementation of the recommendations at the jurisdictional level, to mitigate the risk of regulatory fragmentation and arbitrage and to address risks to financial stability arising from global stablecoins. The work on fostering the soundness of global stablecoins is an important part of the FSB roadmap for enhancing cross-border payments endorsed by the G20 in October 2020. FSB plans to review its recommendations, in consultation with the other relevant standard-setting bodies and international organizations, by July 2023; the review, will identify ways to address gaps could be addressed in existing frameworks and will lead to an update of the FSB recommendations, if needed.

     

    Related Links

    Keywords: International, Banking, Securities, Crypto Assets, G20, Stablecoins, Digital Currency, Progress Report, FSB

    Related Articles
    News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News
    News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News
    News

    IOSCO Welcomes Work on Sustainability-Related Corporate Reporting

    The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)

    September 15, 2022 WebPage Regulatory News
    News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    News

    BoE Allows One-Day Delay in Statistical Data Submissions by Banks

    The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.

    September 14, 2022 WebPage Regulatory News
    News

    ACPR Amends Reporting Module Timelines Under EBA Framework 3.2

    The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.

    September 14, 2022 WebPage Regulatory News
    News

    APRA to Modernize Prudential Architecture, Reduces Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.

    September 12, 2022 WebPage Regulatory News
    News

    PBC Issues List of Systemic Banks, Adds 2 Foreign Banks to CERB List

    The China Banking and Insurance Regulatory Commission (CBIRC) published the administrative measures for internal control of wealth management companies, which come into force on the day of promulgation.

    September 09, 2022 WebPage Regulatory News
    News

    PRA Publishes Discussion Paper on Its Future Approach to Policy

    The Prudential Regulation Authority (PRA) proposed its approach to policy-making as it takes on wider rulemaking responsibilities under the Financial Services and Markets Bill.

    September 08, 2022 WebPage Regulatory News
    News

    ECB Publishes Opinion on Proposed Regulation on Data Act

    The European Central Bank (ECB) published its opinion on the proposal for a regulation on harmonized rules on fair access to and use of data (Data Act).

    September 08, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8511