G20 watchdog exposes global crypto firms' lack of refuge

The G20's Financial Stability Board (FSB) has published final recommendations for supervising firms that trade cryptocurrencies, emphasizing the need for basic safeguards to prevent financial instability. The FSB's guidelines focus on robust governance, risk management, and disclosures to ensure customer funds are segregated from company cash. The collapse of FTX exchange in November 2022 highlighted vulnerabilities in the crypto sector, prompting the FSB to urge all countries, including non-members, to apply the recommendations. FSB Secretary General John Schindler emphasized that crypto firms can no longer operate outside the regulatory perimeter, as the framework provides clarity on the standards that should apply. The FSB's global baseline standards are expected to be complemented by additional measures from global banking and securities watchdogs.