The World Federation of Exchanges (WFE), the global industry group for exchanges and Central Clearing Counterparties (CCPs), has asked the Financial Stability Board (FSB), and other international standard-setting bodies, to develop, adopt and employ a global taxonomy. The growth of stablecoins has created a need for a standard classification or definition of a Global Stablecoin (GSC) or a crypto-asset.
The World Federation of Exchanges (WFE), the global industry group for exchanges and Central Clearing Counterparties (CCPs), has asked the Financial Stability Board (FSB), and other international standard-setting bodies, to develop, adopt and employ a global taxonomy. The growth of stablecoins has created a need for a standard classification or definition of a Global Stablecoin (GSC) or a crypto-asset.
The overarching intent behind developing a global taxonomy is to establish consistent and common regulatory classifications before they fragment further. What’s more, the taxonomy would reduce the variance between jurisdictions and curb regulatory dissonance. Furthermore, a periodic review of the taxonomy would ensure that forms of GSC and crypto-assets, which have matured into a commonly used product, could be incorporated and regulated.
The WFE has also asked the FSB to work on creating classifications via the taxonomy, application of the recommendations, and applying cross-border co-operation recommendations and information-sharing requirements to the supervision of all those trading GSC/crypto-assets.
Furthermore, to address challenges around market integrity and consumer protection, regulators are expected to share information on global stablecoins and crypto-assets and on their issuers and the platforms on which they are exchanged. This will ensure formalized coordinated approaches to enforcement and oversight in general.
Click here to read the original article published by Ledger Insights.
Please give your feedback on this article or share a similar story for publishing by clicking here.
