Financial Stability Board (FSB), the G20’s financial risk watchdog, has warned of “significant gaps” in how jurisdictions regulate cryptocurrencies and stablecoins—even as the global crypto market has grown to around $4 trillion.
Key points:
Many countries still lack comprehensive legal frameworks specifically for stablecoins, despite them being valued at nearly $290 billion.
The FSB emphasised the need for better international coordination and consistent regulation to reduce risks of regulatory arbitrage (when companies shift to the most favourable jurisdictions).
While current risks to financial stability are labelled “limited” for now, the pace of growth in the crypto sector means the risks are rising.