neutral
Recently
Financial Stability Board warns of regulatory gaps posing risk to global crypto markets
No Image
The FSB warns that gaps in crypto regulation globally increase systemic risks and calls for stronger international coordination.
The Financial Stability Board (FSB) in a recent assessment of about 40 jurisdictions flagged that regulatory gaps in crypto and stable-coin markets could lead to significant financial stability risks. The report highlights uneven supervision of lending, leverage and custody services in the cryptocurrency ecosystem, allowing platforms to exploit jurisdictions with lax rules via ‘regulatory arbitrage’. With only a few jurisdictions having comprehensive frameworks, the FSB urged deeper international coordination to curb risks of contagion or failure in the crypto-asset space. Global regulators may now increase pressure to close loopholes.