It also introduces the reports the FSB is submitting to the G20 addressing these issues, including;

The financial stability implications of tokenisation. This report outlines the "steps authorities and international bodies should consider to address data gaps in monitoring tokenisation adoption; increase understanding of how its features fit into legal and regulatory frameworks and supervisory approaches; and facilitate cross-border information sharing."

The status report on the G20 Cryptoasset Policy Implementation Roadmap. This report outlines the "progress made by jurisdictions in implementing the global regulatory framework for cryptoasset policy and regulatory responses developed by the IMF, FSB and standard-setting bodies."

One area of focus is "harnessing the benefits of digital innovation while containing its risks." The FSB will take forward implementation of its global regulatory and supervisory framework for cryptoasset activities and continue to monitor the financial stability implications of other digital innovations, including tokenisation and artificial intelligence.

Other priority areas of work include:

• Supporting global cooperation on financial stability
• Completing resolution reforms
• Enhancing the resilience of non-bank financial intermediation (NBFI)
• Enhancing cross-border payments
• Enhancing cyber and operational resilience
• Addressing financial risks from climate change

The framework is based on the principle of ‘same activity, same risk, same regulation’ and provides a basis for ensuring that cryptoasset activities and stablecoins are subject to "consistent and comprehensive regulation, commensurate to the risks they pose, while supporting responsible innovations potentially brought by the technological change."

The framework consists of two distinct sets of recommendations:

1. high-level recommendations for the regulation, supervision and oversight of cryptoasset activities and markets;

2. revised high-level recommendations for the regulation, supervision, and oversight of 'global stablecoin' arrangements.

The recommendations focus on "addressing risks to financial stability, and do not comprehensively cover all specific risk categories related to cryptoasset activities. They take account of lessons from events of the past year in cryptoasset markets, as well as feedback received during the public consultation of the FSB’s proposals."

The document describes how the two distinct sets of recommendations build a framework for the regulation, supervision and oversight of global stablecoins arrangements and other cryptoasset activities and sets out next steps.

The other issues were: 

• Intensified monitoring of vulnerabilities and continued support of international cooperation and coordination in the aftermath of COVID-19 and the war in Ukraine
• Enhancing the resilience of the non-bank financial intermediation sector
• Enhancing the resolvability of central counterparties (CCPs)
• Strengthening regulation and supervision of risks from financial institutions’ reliance on critical third-party providers, as well as those institutions’ cyber incident reporting
• Assessing and addressing climate-related financial risks
• Taking forward the G20 roadmap to enhance cross-border payments.

The core components of this framework are proposals for:  

• recommendations that promote the consistency and comprehensiveness of regulatory, supervisory and oversight approaches to cryptoasset activities and markets and strengthen international cooperation, coordination and information sharing; and
• revised high-level recommendations for the regulation, supervision, and oversight of “global stablecoin” arrangements to address associated financial stability risks more effectively.

The two sets of recommendations are closely interrelated, reflecting the interlinkages between stablecoins and the broader cryptoasset ecosystem. They have been developed as stand-alone documents but are intended to work together in light of these interlinkages and to be consistent where they cover the same issues and risks

The FSB is seeking comments from the public on the proposed recommendations. The framework note includes a set of questions for this purpose. Responses should be sent to fsb@fsb.org by 15 December 2022.

On 20 May 2022, following their meeting, G7 finance ministers and central bank governors published their communiqué on their future actions and priorities. 

Among other things, the group reiterated their support for the Financial Stability Board (FSB) and called on it to accelerate its efforts to implement a regulatory framework for cryptoassets and their service providers. Given the recent developments and uncertainty in the cryptoasset market, the G7 are asking the FSB to coordinate with international standard-setters to rapidly develop and implement a consistent and comprehensive regulation of cryptoasset issuers and service providers.

The aim is to hold cryptoassets (including stablecoins) to the same standards as the rest of the financial system. Critically, the G7 have called for the implementation of the FATF ‘travel rule’, with the implementation of stronger disclosure and regulatory reporting requirements.

The group also highlighted the opportunities and challenges posed by CBDCs, and encouraged jurisdictions exploring CBDC initiatives to consider, in particular, their international and cross-border dimensions.