The global financial stability outlook remains challenging, according to Klaas Knot, Chair of the Financial Stability Board (FSB). In a letter to G20 finance ministers and central bankers, Knot outlined the FSB’s plan, which includes a focus on asset tokenization. The letter, dated February 20 and released on February 26, also highlighted priority areas such as non-bank financial intermediation, climate change, cross-border payments, and digital innovation. Knot stated that the FSB will deliver reports on the financial stability implications of asset tokenization and artificial intelligence (AI) by 2024. The G20’s global regulatory and supervisory framework for crypto-assets was endorsed last year, and the FSB collaborated with the International Monetary Fund on a Synthesis Paper proposing the G20 Roadmap on Crypto Assets. The FSB plans to release a progress report on the roadmap in October and propose a format for incident reporting exchange to facilitate information sharing among financial institutions and agencies. The FSB will also address Anti-Money Laundering and Know Your Customer requirements in its work on cross-border payments. The G20, consisting of 19 countries, the European Union, and the African Union, appointed Brazil as this year’s presidency, following India’s emphasis on the need for global crypto regulation as the previous G20 leader. South Africa will assume the G20 leadership in 2025. The FSB, an independent association, is hosted by the Bank for International Settlements and aims to promote information exchange and international cooperation among financial regulators.
FSB to Establish Universal Protocol for Crypto Institution Incident Reporting