FSB targets global crypto oversight and AI’s financial impact in 2024
The Financial Stability Board (FSB) — an international organization overseeing the global financial system — has published its detailed plans for 2024. The FSB Work Programme for 2024' encompasses tracking the implementation of its global regulatory framework for crypto-asset activities and the financial implications of digital innovations, like tokenization and artificial intelligence (AI) .
The publication states that a critical focus for 2024 and beyond is ensuring the effective implementation of the agreed global regulatory and supervisory framework for crypto-asset activities, markets, and international stablecoin arrangements.
The FSB developed a global regulatory framework for crypto in July 2023. The guidelines recommended to the 20 leading economies of the world, known as the G20, state that crypto platforms must segregate clients’ digital assets from their funds and separate functions to avoid conflict of interest, with regulators ensuring tight cross-border cooperation and oversight.
We have published our 2024 work programme, which outlines our priorities and provides a timeline for our planned reports. Find out more: https://t.co/Mca17lj94A pic.twitter.com/PAfkx5b50a
— The FSB (@FinStbBoard) January 24, 2024
Separated from a long list of crypto-assets and stablecoin actions was ‘related’ work on tokenization. The work program released by the FSB in July 2023 stated that it is exploring current and planned asset tokenization projects to assess financial stability implications.
However, the FSB also plans to complete work on the financial stability implications of tokenization in 2024 and prepare a report for the G20 (Group of 20) on recent developments in AI and their potential impact on financial stability and, in its efforts, enhance cyber resilience.
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The FSB stated that the timeline for the report on the financial stability implications of AI is marked for November 2024, while the report on the financial stability implications of tokenization is to be expected in October.
Designing a format for incident reporting exchange (FIRE) to promote greater convergence in financial institutions’ reporting of incidents to monetary authorities is another action on the FSB’s 2024 work program.
To improve consistency in cyber incident reporting, in April 2023, the FSB discovered that financial authorities share everyday information needs. They proposed a standard format called FIRE for financial institutions to report incidents to enhance convergence, facilitating information exchange among authorities.
At the beginning of July, the Association for Financial Markets in Europe cited the FSB stance , urging European Union lawmakers to include the category of DeFi into the first EU-wide crypto framework.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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