The Financial Stability Board (FSB), the G20’s risk watchdog, has warned of “significant gaps” in global crypto regulation, cautioning that fragmented and inconsistent oversight could threaten financial stability as digital asset markets expand rapidly. FSB’s latest review found that, while some countries have made progress on implementing its 2023 recommendations, cross-border coordination remains inadequate. While crypto markets have doubled in value over the past year to USD 4 trillion (with stablecoins growing nearly 75% to USD 290 billion), few jurisdictions have fully developed frameworks to govern them. In total, FSB’s report reviewed 29 markets and calls for faster, harmonized implementation of global rules to mitigate systemic risk. FSB Secretary General John Schindler emphasized that crypto’s borderless nature demands stronger international cooperation, noting that “these assets can move across borders much more easily than others”. The watchdog’s eight recommendations urge enhanced monitoring, information-sharing and regulatory alignment to prevent future crises as crypto becomes increasingly linked to traditional finance.
