The Financial Stability Board (FSB) and the International Monetary Fund (IMF) published рекомендации aimed at regulating digital assets.
The initiative aims to unify standards and positions to assist jurisdictions in mitigating risks arising from crypto-asset activity.
The report notes risks to financial stability in the event of volatility of stablecoins.
Regarding DeFi protocols, the authors remind that they, in function, are not substantially different from TradFi. The mentioned platforms have the potential to amplify risks and vulnerabilities in traditional systems — liquidity and maturity mismatches, operational fragility, interconnectedness, and excessive leverage, according to the experts.
“Statements about decentralisation often do not withstand scrutiny. Currently, DeFi can demonstrate unclear, opaque, unverified, or easily manipulable governance structures that may expose users to risks”, the document says.
The report mentions IMF’s stance that regulation rather than prohibition is appropriate for the digital-asset sector. It provides guidance for authorities to focus on addressing issues that shape consumer demand for new forms of payment.
The report ends with a roadmap for implementation.
The document outlines planned and ongoing work related to implementing the core policies for crypto-assets, which collectively aim to:
- building institutional capacity beyond G20 jurisdictions;
- strengthening global coordination, cooperation and information sharing;
- closing data gaps necessary to understanding the rapidly evolving cryptocurrency ecosystem.
In July 2023, the Council presented the recommendations for the global regulation of digital assets. The document sets standards for stablecoin issuers and trading platforms.
Earlier, the G20’s advisory body concluded that none of the existing ‘stablecoins’ meet the standards set for crypto assets by the central banks of the world’s largest economies.