The Financial Stability Board (FSB), an international watchdog tasked with preventing global financial crises, says it will issue draft cryptocurrency regulations this October.
The Basel, Switzerland-based organization reports to the Group of 20 (G-20) representing the world's biggest economies. The cryptocurrency regulations that are put forward will cover stablecoins and other digital assets, the FSB said in a written statement.
“The FSB is working to ensure that crypto-assets are subject to robust regulation and supervision,” the statement said.
The organization also said that recent turmoil in cryptocurrency markets highlights structural vulnerabilities, as well as the interconnectedness between cryptocurrencies and traditional financial systems.
The FSB is the latest organization that is moving to regulate cryptocurrencies amid a market crash this year.
In June, the European Union (EU) accepted legislation to govern cryptocurrency issuers and service providers, with an emphasis on rules for stablecoins, cryptocurrencies that are pegged to the value of currencies.
Last week, the U.S. Treasury Department unveiled draft regulations aimed at governing the cryptocurrency sector.
In February, the FSB published a report warning that the unregulated cryptocurrency sector could derail global financial stability given its rapid growth.
In October, the FSB plans to submit a public consultation report to the G-20 containing “high-level recommendations for the regulation, supervision and oversight of stablecoins.”
The FSB also plans to issue recommendations for “promoting international consistency of regulatory and supervisory approaches to other crypto-assets.”
The price of Bitcoin (BTC), the largest digital coin, has declined 70% to $20,000 U.S. from a peak of $68,000 U.S. last November.
