The Financial Stability Board (FSB) which is an international body that monitors and makes recommendations about the global financial system published a proposed framework for International Regulation of Crypto-asset Activities on 11 October 2022. The said framework sets out a) the key issues and challenges in developing a comprehensive and consistent regulatory approach that captures all types of crypto-asset activities that could rise to financial stability risks; b) policy initiatives at the jurisdictional and international levels; c) the FSB’s proposed approach for establishing a comprehensive framework.
The FSB reports that crypto-assets and markets must be subject to effective regulation and oversight commensurate with the risks they pose. Crypto-asset markets are fast evolving and could reach a point where they represent a threat to global financial stability due to their scale, structural vulnerabilities and increasing interconnectedness with the traditional financial system.
WSBI-ESBG, for its part, welcomed the initiative of addressing the above-mentioned crucial issues and replied to the call for feedback on this consultative document on a proposed framework for International Regulation of Crypto-asset Activities, in particular calling for a more measured regulatory approach between the several players (i.e.; financial institutions, issuers, and providers of crypto assets) and for consistency between regulations and requirements applicable to traditional finance and crypto-based finance.
Finally, members underlined the importance of having a clear and dynamic regulatory approach to avoid confusion on the categorization of crypto-assets (i.e.; stablecoins, global stablecoins, digital assets), and the need for a higher consistency between local and international regulations.
related
European Banking Authority (EBA) on ESG risk management
The European Savings and Retail Banking Group (ESBG) submitted its response to the consultation launched by the European Banking Authority (EBA). ESBG insists on the need for consitency with CSRD and CSDDD, the addressees of this guideline should also
Enhancing Transparency in Bank Disclosures: ESBG delivers comprehensive response to the EBA’s Pillar 3 data hub consultation
On 14 December 2023, the European Banking Authority (EBA) published a discussion paper on the Pillar 3 data hub processes and its possible practical implications.
IASB Exposure Draft (ED) on Financial Instruments with Characteristics of Equity
On 29 November 2023, the International Accounting Standards Board (IASB) proposed amendments in an Exposure Draft to tackle challenges in financial reporting for instruments with both
ESBG’s response to the EFRAG Comment Letter on Financial Instruments with Characteristics of Equity
On 29 November 2023, the International Accounting Standards Board (IASB) proposed amendments in an Exposure Draft to tackle
ESBG advocates for increased clarity and streamlining of supervisory reporting requirements
On 14 March, ESBG submitted its response to the European Banking Authority (EBA) consultation on ITS amending Commission Implementation Regulation (EU) 2021/451 regarding supervisory reporting
WSBI-ESBG advocates for robust implementation of the BCBS Pillar 3 framework for climate-related financial risks
On 14 March, WSBI-ESBG submitted its response to the Basel Committee on Banking Supervision (BCBS) consultation on its Pillar 3 disclosure framework for climate-related financial risks
ESBG stresses the need for consistency and clarity in its Response to the SFDR Review Consultation
ESBG submitted its response to the European Commission’s consultation on the SFDR review, aiming to enhance transparency in sustainability-related disclosures within the financial services sector
ESBG response to the EBA’s consultation on Guidelines on preventing the abuse of funds and certain crypto-assets transfers for ML/TF
The guidelines on the “travel rule” delineate the actions that Payment Service Providers (PSPs), Intermediary PSPs
ESBG responds to the SRB consultation on the future MREL policy
The European Savings and Retail Banking Group (ESBG) submitted its response to the consultation launched by the Single Resolution Board (SRB) in December 2023 on the future of the Minimum Requirement for own funds
ESBG’s response to the Commission’s consultation on the GDPR
The primary EU legislation ensuring the fundamental right to data protection is the General Data Protection Regulation
