G20 risk watchdog warns of 'significant gaps' in global crypto rules

Core Insights - The Financial Stability Board (FSB) has identified "significant gaps" in the regulation of rapidly growing crypto markets, which could pose risks to financial stability [1][2] - The FSB's review indicates that while some progress has been made, the international implementation and coordination of crypto regulations remain fragmented and insufficient [2][4] - The global crypto market has doubled in value to $4 trillion over the past year, raising concerns about financial stability risks, although they are currently assessed as limited [2][3] Regulatory Framework - The FSB highlights a lack of comprehensive regulatory frameworks for stablecoins, which are increasingly connected to the traditional financial system [4][5] - The stablecoin market has grown by nearly 75% over the past year, reaching just under $290 billion, with expectations for continued growth due to new U.S. regulations [5] - The FSB reviewed the implementation of crypto and stablecoin recommendations across 29 jurisdictions, including the U.S., EU, Hong Kong, and the UK, although the U.S. only participated in the stablecoin aspect [5][6] Need for Cooperation - The FSB emphasizes the necessity for improved global cooperation and coordination among jurisdictions to address the risks associated with crypto assets [6]