The Financial Stability Board (FSB) has proposed a solution to the industry’s fragmented regulatory environment for digital assets throughout the years. The FSB wants the rules that apply to financial institutions to also apply to digital assets under the new framework that the global financial monitoring agency has suggested.
The suggestion from the FSB stated that “effective regulatory and supervisory frameworks should be based on the idea of “same activity, same risk, same regulation.” “Crypto-assets and intermediaries should be subject to analogous regulation if they provide an economic purpose that is comparable to that served by the instruments and intermediaries of the traditional financial industry.”
The Board stated that uniform regulation across numerous jurisdictions is necessary in order to reduce the risks associated with virtual currencies while “harnessing the benefits of the technology.” The new framework for implementing banking laws to the digital asset business is open for public comment, and the FSB claims that it will promote consistency.
