President Joe Biden of the United States has joined other G20 leaders in pushing for standardised rules to govern the global exchange of virtual currencies.
In a recent conference in Indonesia, the heads of the world’s 20 major economies reportedly agreed there is a need to improve laws in the crypto field, as reported in a G20 statement released by the White House.
In order to fully reap the rewards of innovation, “it is necessary to enhance public knowledge of risks, to reinforce regulatory outcomes, and to maintain a fair playing field.”
The organization is gathering behind the Financial Stability Board’s (FSB) attempts to establish a global crypto regulatory framework, arguing that digital assets and intermediaries that are functionally comparable to their conventional financial equivalents should be subject to equal regulation.
“We appreciate continued efforts by the FSB and international standard setters to guarantee that the crypto-assets ecosystem, including so-called stablecoins, is subject to careful monitoring and effective regulation, supervision, and oversight to limit any threats to financial stability.”
We applaud the FSB’s plan to create a global framework for the regulation of crypto-asset operations based on the idea of “same activity, same risk, same regulation.”
In this regard, we appreciate the Financial Stability Board’s (FSB) consultation report on the examination of its high-level proposals for the regulation, monitoring, and oversight of “global stablecoin” arrangements. In addition, we praise the Financial Stability Board’s consultation paper for fostering “international uniformity of regulatory and supervisory approaches to crypto-asset activity and markets.”
According to the two organisations, stablecoin transactions are covered under the current international standard for financial markets known as the Principles for Financial Market Infrastructures.