Expert opinion

Nikolay Denisenko, Co-Founder and CTO at Brighty App on the FSB’s global regulatory framework for cryptoasset activities:

The global regulatory framework developed by the FSB for crypto asset activities will likely have a significant impact on the industry. By addressing the fast-evolving nature of crypto-asset markets, the framework aims to mitigate potential risk and establish consistent regulation.

The FSB's principle of ‘same activity, same risk, same regulation’ underpins the framework. This principle emphasizes the need for enforceable legal bases for crypto-asset service providers that is equivalent to those in traditional financial markets. This approach ensures that adequate safeguards are in place, preventing blow-ups and protecting client assets. The strengthening of high-level recommendations in areas like client asset security, conflicts of interest, and cross-border cooperation further reinforces the framework's effectiveness.

Regarding central bank digital currencies, it would be prudent for them to adhere to similar regulations. Applying consistent regulations ensures alignment with broader frameworks and mitigates risks associated with CBDCs. By subjecting CBDCs to the same regulations, we can uphold standards, promote transparency, and maintain accountability in the rapidly evolving crypto asset landscape.

In terms of the FSB's approach to regulation, it demonstrates a proactive and necessary stance. The increasing influence of cryptocurrencies on the global economy and potential spillover risks to the broader financial system require a robust regulatory response.