The WFE asked the Financial Stability Board, and other international standard-setting bodies, to generate, adopt and use a global taxonomy as it would drive a common understanding of whether a global stablecoin (GSC) or crypto-asset fits a certain classification or definition. This would reduce the variance between jurisdictions and curb regulatory dissonance. A periodic review of the taxonomy would ensure that forms of GSC and crypto-assets, which have matured and may constitute a new, viable and commonly used product, can be incorporated and regulated accordingly.
The WFE asked the FSB to consider three areas for further work:
- Creating classifications via a taxonomy for all GSC and crypto-assets
- Application of the recommendations to all crypto-assets
- Applying the cross-border co-operation recommendations and information-sharing requirements to the supervision of all those trading GSC/crypto-assets
Regulators should cooperate to share information on global stablecoins and crypto-assets and also on their issuers and the platforms on which they are traded, the WFE said. Without formalised co-ordinated approaches to enforcement and oversight in general, issues around market integrity and consumer protection will not be fully addressed.
Nandini Sukumar, Chief Executive Officer of the WFE said; “We support the overall ambition of seeking to address fragmented regulatory approaches by moving to an outcomes focus, applying the ‘same business, same risk, same rules’ principle; and building on the need for cross-border co-operation in the supervision of global stablecoin, both for wholesale and retail.”