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The events of the past year have highlighted the intrinsic volatility and structural vulnerabilities of crypto-assets and related players. They have also illustrated that the failure of a key service provider in the crypto-asset ecosystem can quickly transmit risks to other parts of that ecosystem. As recent events have illustrated, if linkages to traditional finance were to grow further, spillovers from crypto-asset markets into the broader financial system could increase.

The G20 tasked the FSB to coordinate the delivery of an effective regulatory, supervisory and oversight framework for crypto-assets. The framework takes account of lessons from events of the past year in crypto-asset markets and feedback received during the FSB's public consultation.

The framework consists of two distinct sets of recommendations:

• High-level recommendations for the regulation, supervision and oversight of crypto-asset activities and markets.

• Revised high-level recommendations for the regulation, supervision, and oversight of "global stablecoin" arrangements.

The final recommendations draw on the implementation experiences of jurisdictions and build on the principles - 'same activity, same risk, same regulation'; high-level and flexible; and technology neutral - that informed the consultative framework. In light of events of the past year, the FSB has strengthened both sets of high-level recommendations in three areas: (i) ensuring adequate safeguarding of client assets; (ii) addressing risks associated with conflicts of interest; and (iii) strengthening cross-border cooperation.

The recommendations focus on addressing risks to financial stability and do not comprehensively cover all specific risk categories related to crypto-asset activities. Central Bank Digital Currencies (CBDCs), envisaged as digitalised central bank liabilities, are not subject to these recommendations.

The FSB has been working closely with the sectoral standard-setting bodies (SSBs) and international organisations to ensure that the work underway regarding the monitoring and regulation of crypto-asset activities and markets is coordinated, mutually supportive, and complementary. The global framework includes a shared workplan that the FSB and SSBs have developed for 2023 and beyond. Through this, they will continue to coordinate work under their respective mandates to promote the development of a comprehensive and coherent global regulatory framework, including through the provision of more granular guidance by SSBs, monitoring and public reporting.