The Financial Stability Board (FSB) is calling for greater cooperation among national regulatory bodies in the regulation of cryptocurrency. Specifically, the FSB is urging cross-border collaboration in the supervision of multifunction crypto-asset intermediaries (MCIs), which are critical to the crypto ecosystem but also pose risks to global financial stability. MCIs are firms that combine a range of crypto-asset services and products, similar to traditional finance platforms. However, the combination of functions in MCIs can exacerbate vulnerabilities such as leverage, liquidity mismatch, and technology risks. The FSB warns that allowing crypto firms to combine different activities without restrictions could have a negative impact on the global financial system. Therefore, the FSB recommends a global approach to regulatory enforcement across crypto-asset markets. This call for cooperation follows the FSB’s previous reports on the risks of decentralized finance (DeFi) and the release of a global regulatory framework for crypto, which was endorsed by the G20.

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Information	Details
Geography	Global
Countries
Sentiment	neutral
Relevance Score	1
People	None
Companies	Financial Stability Board (FSB), FTX, Binance
Currencies	None
Securities	None