G20 financial regulator refines recommendations for regulating stablecoins

The Financial Stability Board (FSB) of the G20 published the final version of the recommendations for regulation, supervision, and oversight of stablecoins.

P131020-3 by ForkLog on Scribd

The report states that such coins before launch must meet existing regulatory standards and mitigate risks to financial stability, and, if necessary, adapt to new regulatory rules.

The FSB believes that global stablecoins (GSC) have the potential to improve payment efficiency and promote financial inclusion. However the emergence of GSCs could call into question the completeness and effectiveness of the existing regulatory and supervisory framework.

The organisation has developed 10 recommendations that facilitate "coordinated and effective regulation, supervision, and oversight of GSC mechanisms with a view to eliminating financial stability risks".

Some functions of stablecoins may have cross-border implications, so the FSB emphasised the importance of international cooperation and information-sharing among authorities.

Back in March 2020, the Financial Stability Board issued recommendations for regulating stablecoins.

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