FSB Identifies Gaps in Global Cryptocurrency Regulation

According to PANews, the Financial Stability Board (FSB) has highlighted significant gaps and inconsistencies in cryptocurrency regulation across nearly 40 jurisdictions. These discrepancies are contributing to regulatory arbitrage and cross-border 'forum shopping.' The FSB noted that cross-border collaboration is fragmented and insufficient, with weak oversight on leverage and stablecoins potentially triggering cascading risks under market pressure. The European Banking Authority (EBA) also observed that some crypto firms are opting to enter markets in EU member states with more lenient regulations. In response, the FSB has issued eight recommendations aimed at improving data, asset segregation, and cross-border enforcement to mitigate systemic risks.