‘Robust’ Regulations Needed in Crypto & Stablecoin Sector, Says G20 Advisory Body Ahead of Its Report in October

cryptonews.com:

One of the world’s leading financial policy-making organizations said that it will tell governments to step up their supervision of stablecoins later this year – against a “backdrop of the recent turmoil” in the crypto sector.

In a press release from the Financial Stability Board (FSB), which advises the G20 on economic policy matters, the body claimed it was “working to ensure” that cryptoassets were “subject to robust regulation and supervision.”

The FSB added that it intends to report to the G20’s finance ministers and central bank governors in October on “regulatory and supervisory approaches to stablecoins and other cryptoassets.”

The body indicated that policing stablecoins will become a high-priority matter for G20 member states, writing:

“Stablecoins should be captured by robust regulations and supervision of relevant authorities if they are to be adopted as a widely used means of payment or otherwise play an important role in the financial system.”

The G20’s finance chiefs are slated to meet for the first time since February this year in Jakarta, Indonesia. The meeting will take place on October 30-31, shortly before the heads of state meet again in Bali.

Although the body did not hint at the exact nature of the regulations it wants governments to develop, it explained that it intends to submit a “public consultation report” on the “review” of its “high-level recommendations for the regulation, supervision, and oversight of ‘global stablecoin’ arrangements.” This report will include details on “how existing frameworks may be extended to close gaps and implement the high-level recommendations.”

Quite what the FSB means by the term “global stablecoin” is unclear at this stage. In previous years, the term was used to