The Financial Stability Board (FSB) also plans to complete work on the financial stability implications of tokenization in 2024.
The Financial Stability Board (FSB) — an international organization overseeing the global financial system — has published its detailed plans for 2024. The FSB Work Programme for 2024 encompasses tracking the implementation of its global regulatory framework for crypto-asset activities and the financial implications of digital innovations, like tokenization and artificial intelligence (AI).
The publication states that a critical focus for 2024 and beyond is ensuring the effective implementation of the agreed global regulatory and supervisory framework for crypto-asset activities, markets and international stablecoin arrangements.
The FSB developed a global regulatory framework for crypto in July 2023. The guidelines recommended to the 20 leading economies of the world, known as the G20, state that crypto platforms must segregate clients’ digital assets from their funds and separate functions to avoid conflict of interest, with regulators ensuring tight cross-border cooperation and oversight.
Separated from a long list of crypto-assets and stablecoin actions is “related” work on tokenization. The work program released by the FSB in July 2023 stated that it is exploring current and planned asset tokenization projects to assess financial stability implications.
However, the FSB also plans to complete work on the financial stability implications of tokenization in 2024 and prepare a report for the G20 on recent developments in AI and their potential impact on financial stability and, in its efforts, enhance cyber resilience.
The FSB stated that the timeline for the report on the financial stability implications of AI is marked for November 2024, while the report on the financial stability implications of tokenization is to be expected in October.
Designing a format for incident reporting exchange (FIRE) to promote greater convergence in financial institutions’ reporting of incidents to monetary authorities is another action on the FSB’s 2024 work program.
To improve consistency in cyber incident reporting, in April 2023, the FSB discovered that financial authorities share everyday information needs. It proposed a standard format called FIRE for financial institutions to report incidents to enhance convergence, facilitating information exchange among authorities.
At the beginning of July, the Association for Financial Markets in Europe cited the FSB stance, urging European Union lawmakers to include the category of decentralized finance into the first EU-wide crypto framework.
Source: Cointelegraph.com
