G20 Risk Watchdog Encourages Stronger Global Cooperation to Build Safer, More Transparent Crypto Markets
Paris — The Financial Stability Board (FSB), the G20’s international financial risk watchdog, has released a new report calling for greater global coordination in regulating cryptocurrencies, emphasizing that stronger frameworks will help ensure innovation, investor protection, and long-term market stability.
While the FSB acknowledged “significant gaps” in how countries currently oversee crypto markets, it also praised the notable progress made since its 2023 recommendations, which aimed to align crypto regulations with mainstream financial standards.
The report underscores that the rapid growth of digital assets presents both opportunities and challenges, and that international cooperation is key to managing them effectively.
Building a Safer and More Transparent Financial Future
The FSB’s latest review reflects a proactive and constructive tone. Rather than warning of imminent threats, the organization highlights the importance of addressing inconsistencies in regulation to support a stable and transparent global crypto ecosystem.
“Financial stability risks remain limited at present,” said John Schindler, Secretary General of the FSB, in an interview with Reuters. “But as the crypto market grows, the need for consistent, cross-border rules becomes essential.
These crypto assets move easily across borders—more so than most traditional financial assets—so cooperation is crucial.”
The report comes amid a surge in cryptocurrency value, with the global market doubling to nearly $4 trillion over the past year. This rise, while remarkable, has also highlighted the need for stronger frameworks to ensure that growth is sustainable and that investors remain protected.
Stablecoins: The Next Frontier of Regulation
One of the FSB’s key areas of focus is stablecoins, digital assets typically pegged to traditional currencies like the U.S. dollar.
Although the stablecoin market remains smaller than the broader crypto sector, it has grown significantly — nearly 75% over the past year, reaching a value of just under $290 billion.
Stablecoins have become essential for the functioning of many digital transactions, serving as a bridge between crypto and traditional finance.
The FSB’s review found that while several jurisdictions have begun developing rules for stablecoins, many are still in early stages.
The FSB encourages all countries to establish comprehensive, transparent, and consistent frameworks to ensure that stablecoins are safe, reliable, and fully backed by tangible assets.
Schindler noted that U.S. regulations on stablecoins have already provided a foundation that other regions can learn from.
The European Union, Hong Kong, and the UK have also made progress toward implementing the FSB’s recommendations.
However, the organization emphasized that full international alignment will be essential to prevent regulatory loopholes and ensure a fair global playing field.
Strengthening Global Cooperation and Trust
The FSB reviewed 29 jurisdictions, including major economies such as the United States, the EU, the UK, and Hong Kong.
While not all countries have participated fully in the process, Schindler stressed that the ongoing dialogue remains valuable.
He noted that cooperation must continue to deepen, as the borderless nature of digital assets requires regulators to share information and coordinate policies effectively.
“We can all put in place frameworks,” Schindler explained, “but if some players aren’t cooperating, it becomes much more difficult. Crypto assets don’t observe borders — and that’s exactly why we must work together globally.”
The FSB’s latest findings come at a time when governments and institutions are increasingly focused on building a responsible and innovative financial ecosystem.
The collapse of major platforms such as FTX in 2022 served as a wake-up call, prompting reforms that have already improved transparency and investor confidence.
A Constructive Path Forward
The FSB’s report concludes with eight key recommendations to speed up the creation of comprehensive, globally consistent rules.
These include greater data sharing among regulators, closer monitoring of systemic risks, and alignment of national frameworks with international standards.
While the organization warns that risks could rise if left unaddressed, its tone remains forward-looking. The rapid expansion of crypto assets is viewed as an opportunity for the global financial system to evolve toward innovation with accountability.
As the FSB prepares to present its findings to G20 finance ministers, the message is clear: the world’s economies are entering a new phase of financial cooperation — one that balances innovation, transparency, and stability.
With global coordination and continued progress, the crypto sector can mature into a trusted pillar of the modern financial system, benefitting investors, consumers, and economies worldwide.
