FSB to Address Cryptocurrency and AI Regulation in 2024

The Financial Stability Board (FSB) will focus on global standards for the digital asset industry and the regulation of artificial intelligence. This is outlined in the organization’s report on plans for 2024.

According to the document, a key priority for the FSB will be “ensuring the effective implementation of a coordinated global regulatory framework for cryptocurrency activities, related markets, and international stablecoin agreements.”

The Board also highlighted its work on the tokenization of real-world assets and the examination of its implications for the global economy.

By November, the FSB will prepare a separate report for the G20 on recent developments in AI, its potential impact on financial stability, and cybersecurity threats.

The report also noted that spot Bitcoin ETFs in the US demonstrate “the need for careful monitoring of cryptocurrency markets.”

“In the crypto space, everything is constantly changing—and these are not slow, gradual changes, but rapid ones. Something like exchange-traded Bitcoin funds is a good example,” said FSB Secretary General John Schindler.

He added that the global impact of cryptocurrency ETFs “is quite difficult to predict.”

The organization also mentioned the 2023 banking crisis and assured that it will take preventive measures to avoid a recurrence. These include monitoring deposits, studying new technologies, and the influence of social networks.

In the area of improving cross-border payments, the FSB will implement a comprehensive approach through a progress monitoring system in accordance with the “G20 roadmap.”

Earlier, the Financial Stability Board stated that the collapse of crypto firms poses a limited threat to the real economy.

In July 2023, the FSB developed recommendations for a global regulatory framework for digital assets. Subsequently, G20 member countries approved the proposals.