Twenty-four financial authorities and 11 international organizations, including the International Monetary Fund and the World Bank, recently gathered in New York and discussed global standards of crypto regulation. “It is important to consistently implement international standards,” said the chairman of South Korea’s top financial regulator who attended the meeting.
Financial Authorities Discuss Crypto Regulation
The Financial Stability Board (FSB) Plenary met at the Federal Reserve Bank of New York Friday to discuss “vulnerabilities in the global financial system” and the progress report to be delivered to the upcoming G20 meetings in Japan. Among the topics of discussion was global standards of crypto regulation.
“The plenary discussed the different initiatives underway at standard-setting bodies to address risks from crypto-assets and any possible gaps in this work,” the FSB detailed. The Board added that its work on crypto assets has focused on two areas: monitoring of the financial stability implications and a directory of crypto asset regulators. Promising that it will publish an update on “the work of the standard-setting bodies and will deliver it to the June meeting of G20 Finance Ministers and Central Bank Governors,” the Board elaborated:
Members took note of the continued rapid evolution of crypto-asset markets and the need for continued monitoring of developments… the FSB is exploring financial stability, regulatory and governance implications of decentralised financial technologies.
The FSB is an international body that monitors and makes recommendations about the global financial system. Its members include Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Singapore, Spain, Switzerland, Turkey, the U.K., the U.S., the European Union, the Bank of International Settlements, the International Monetary Fund (IMF), and the World Bank.
Earlier this month, IMF Managing Director Christine Lagarde told CNBC, “I think the role of the disruptors and anything that is using distributed ledger technology, whether you call it crypto, assets, currencies, or whatever … that is clearly shaking the system,” adding that they must be monitored to maintain stability.
Transnational Cooperation Needed
According to South Korean media, the meeting was attended by 24 financial authorities and 11 international organizations including the IMF and the World Bank. All are members of the FSB.
Choi Jong-ku, Chairman of South Korea’s top financial regulator, the Financial Services Commission (FSC), attended the meeting. He told local media that the group discussed international cooperation on crypto regulation.
“Transnational cooperation is necessary to regulate virtual currencies,” Choi was quoted by Toyo Economy news outlet as saying. He asserted that each country needs to implement relevant regulation in accordance with the international standards prepared by the Financial Action Task Force (FATF), noting:
It is important to consistently implement international standards agreed by international organizations on a country-by-country basis to minimize regulatory inconsistencies.
The G20 has reaffirmed its support for the FATF as “the global anti-money laundering, counter terrorist financing, and proliferation financing standard-setting body,” as news.Bitcoin.com previously reported. The FATF is currently updating its recommendations for crypto regulation. Several countries, including India, are working with the organization on global standards for crypto assets.
Do you think these countries should implement global standards to minimize crypto regulatory inconsistencies? Let us know in the comments section below.
Images courtesy of Shutterstock and Toyo Economy.