The Financial Stability Board (FSB) is planning to come up with a report on supervisory approaches for stablecoins and other crypto assets in October this year, as per the statement released recently. The report will be submitted to the G20 Finance Ministers and Central Bank Governors and is expected to subject crypto assets to “robust regulation and supervision”, the statement continued. Why it matters: The FSB is an influential body that has a sizable impact on the economic affairs of G20 member countries. The regulations proposed by the FSB also serve as a blueprint for various nations who are not a part of the Group. The new set of rules is likely to introduce a regulatory regime for crypto assets, signalling that the nascent sector’s growing influence has necessitated regulations. What will the report contain: The FSB said that the report will review its “recommendations for the regulation, supervision and oversight of ‘global stablecoin’ arrangements”. The FSB said that it will recommend measures on how existing frameworks can be tweaked to close gaps. The report will also bat for “international consistency of regulatory and supervisory approaches to crypto assets and crypto-asset markets and strengthening international cooperation and coordination”. What is the FSB: It is an international body that monitors and makes recommendations about the global financial system. The Board consists of public officials from all G20 members which in itself comprises major economies of the world. India has been a member of the G20 since its inception in 1999. Why is…
