Crypto currency
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In an effort to help regulators bring some oversight to the crypto sector, the Financial Stability Board (FSB) is setting out to review the implementation of its previously issued, high-level recommendations for the sector — and ultimately to provide advice to regulators on dealing with implementation issues. 

In 2023, the global policy group issued its proposed regulatory framework for crypto, which defined the basic approach that policymakers have taken to the emerging sector, which is to apply similar standards that are well established in the traditional financial sector to the industry — a principle known as “same activity, same risk, same regulation.”

It also issued two sets of specific recommendations — one for overseeing the crypto sector, and one for global stablecoins — with a focus on guarding against financial stability risks.

Now, the FSB is examining how efforts to adopt its high-level recommendations are going at a practical level. 

“The peer review will take stock of progress made … in implementing the FSB crypto framework, including by applying existing frameworks, making rule changes to address gaps, conducting supervision and/or taking enforcement actions,” it said in a notice detailing the planned review.

To that end, the FSB is surveying regulators about their experiences, and, as part of that review, it’s also calling for feedback from the industry on how emerging regulation in this area is working from their perspective.

For instance, the FSB is seeking insight on how regulation in different jurisdictions has affected where firms decide to operate, and how they structure their businesses. It also wants to hear about the challenges that crypto firms are facing in meeting regulatory requirements. 

Additionally, the consultation is trying to gather information on the potential financial stability risks posed by specific practices in the crypto sector, how those risks vary across jurisdictions, and how those risks are evolving as regulation is developed.

The deadline for providing feedback is March 28. The FSB intends to publish a report on the results of the review in October.

“Drawing on the range of jurisdictions’ experiences, the report may identify areas where members face common challenges in implementing the FSB crypto framework, document practices that have proved effective, including through the use of case studies, and make recommendations (where appropriate) to address common challenges,” it said.