Currency watchdog flags gaps in global crypto regulation and stablecoin oversight

The Financial Stability Board issued a review noting significant gaps in how jurisdictions regulate crypto asset markets and stablecoins, despite earlier 2023 guidance. The report highlights inconsistent frameworks, limited cross border coordination and insufficient licensing of stablecoin service providers. It warns that as the global crypto market approaches 4 trillion, fragmented regulation could heighten risks to financial stability. The FSB called for faster global alignment of rules and spot checks on reserves and disclosures for systemically important crypto asset firms.