The Financial Stability Board (FSB) will develop new rules for the cryptocurrency industry. This was stated by Klaas Knot, the chair of the organisation and head of the Dutch central bank.
He expressed concern that the rapidly expanding cryptocurrency sector could, in time, harm the global monetary ecosystem.
“From the standpoint of protecting consumers’ and investors’ rights, a loss of trust in digital assets could have systemic consequences due to its impact on broader financial markets and the welfare of asset holders,” the official said.
Knot believes that the war between Russia and Ukraine has amplified existing concerns about the growth of illicit use of digital assets for money laundering, cybercrime and ransomware.
At the same time, a portion of the cryptocurrency ecosystem remains unregulated, complicating monitoring and oversight of the sector.
“For these reasons, work on crypto-asset policy is a priority for the FSB,” Knot said.
One of his main objectives is to establish comprehensive rules for the market, especially regarding unbacked cryptocurrencies and stablecoins. The FSB will also work on creating a regulatory framework for the DeFi sector in cooperation with the FATF.
In February, the FSB urged standardisation of cryptoasset risk assessments.
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