2024 FSB Program Aims to Address Global Crypto Regulation and Financial Impact of AI
The international organization that oversees the global financial system, the Financial Stability Board (FSB), has published its work program for 2024.
According to the Work Programme for 2024, the FSB plans to set all necessary measures and frameworks for cryptocurrency-related activities.
The move is to cover the implementation and regulation of crypto assets and monitor AI’s impact on the financial system.
The FSB Work Program For 2024 Focuses on Crypto Oversights
The FSB released the plan for the year, tagged Work Programme for 2024, on January 24. As per the publication, the organization set its major focus on global crypto regulatory approaches.
The FSB noted that it would ensure effective crypto oversight and all related activities, markets, and stablecoin engagements worldwide.
We have published our 2024 work programme, which outlines our priorities and provides a timeline for our planned reports. Find out more:https://t.co/Mca17lj94A pic.twitter.com/PAfkx5b50a
— The FSB (@FinStbBoard) January 24, 2024
In July 2023, the FSB created a global regulatory framework for cryptocurrency. Notably, the directives inculcated the 20 leading economies across the world called the G20.
It mentioned that crypto platforms must separate customers’ funds from the companies’ assets and other functions.
The aim was to ensure that there was clarity with no conflict of interest in the ownership and use of digital assets. Moreover, the regulators are expected to maintain strict cross-border cooperation and regulations.
Key Outlines In The FSB’s Program For 2024
In line with its objectives, the FSB revealed its key plans for 2024. One of its focuses is to ensure effective resolution processes in the financial system. The organization noted that it drew lessons from the bank crises in March on its improvement path.
An extract of the publication states:
One focus of FSB work in 2024 will be to promote the full implementation of the Key Attributes of Effective Regimes for Financial Institutions across all sectors work on resolution, including addressing the lessons learned from the March 2023 banking turmoil.
Further, the organization aims to complete all pending work from last year’s focus on the impacts of tokenization on financial stability. Also, discoveries through the 2024 program will help the organization develop a report for the G20.
Notably, the new report will cover the new AI innovations and their possible impact on financial stability. Also, the organization’s input is expected to dig out measures that would enhance cyber resilience against AI threats.
According to the publication, the FSB set November 2024 as the deadline for its report on AI’s impact on financial stability. Secondly, the report on the implications of tokenization on financial stability will be in October this year.
Additionally, the FSB’s work program for 2024 includes creating a format for incident reporting exchange (FIRE).
The new development will ensure more convergence in financial institutions’ records of incidents to financial regulators. Also, the reporting format, FIRE, aims to promote consistency in cyber incident reporting.
In line with the FSB’s discoveries in April 2023, FIRE will enable monetary authorities to share financial information daily.
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