FSB’s new rules were published on July 17. The guidelines are divided into two main parts, one for all cryptocurrencies in general and another specifically for stablecoins. The guiding principle behind these recommendations is "same activity, same risk, same regulation".
The Financial Stability Board (FSB) is a big group that oversees global financial matters that has come up with new guidelines to make crypto safer and more regulated.
One key rule introduced is the requirement for platforms facilitating buying and selling cryptocurrencies to keep clients’ money separate from their own. This measure aims to prevent problems where the platform may misuse client funds for something else.
Additionally, the FSB wants regulators across different countries to collaborate. This is to ensure that platforms cannot avoid regulations by operating in jurisdictions with looser rules. The FSB also seeks to eliminate any shady business and requires regulators to have access to the necessary data for monitoring compliance.
As for stablecoins, the FSB has given out some extra rules. For instance, issuers of stablecoins should be easily identifiable and responsible. They also need to hold funds equivalent to the value of the stablecoin, unless they meet other requirements similar to those of traditional banks.
While various countries and organisations are developing their own ways to regulate cryptocurrencies, the FSB's guidelines aim to establish a basic set of rules that everyone can follow. According to the FSB, cryptocurrencies are not that different from traditional financial tools, so similar regulatory principles should apply.
