News Digest: G20 frames regulatory framework for crypto assets
July 29, 2023
The Group of 20 international forum (G20) has announced global rules that seek to introduce basic safeguards on companies offering crypto assets in a bid to prevent blow-ups seen at the FTX exchange and other such casualties, says a news report.
The international grouping’s financial stability board made the announcement of the new rules in response to the growing influence of cryptocurrencies on the global economy. The board has strengthened recommendations in three key areas around ensuring adequate safeguards of client assets, addressing risks around conflicts of interest and strengthening cross border cooperation.
The G20 committee published their final recommendations based on the requests made by the group over supervising companies that trade crypto assets such as Bitcoin. The G20 watchdog also revised its existing recommendations for Stablecoins in the light of recent instances of some such currencies going out of business.