Financial Stability Board (FSB) chair Klaas Knot has outlined the board’s priorities throughout 2023, including the finalising of its recommendations for the regulation, supervision and oversight of crypto-assets and markets.

Knot shared that the FSB would continue to conduct “forward-looking analysis” to assess the implications of crypto-assets for financial stability, which will include an in-depth examination of the crypto-asset intermediaries that provide a wide range of services to the ecosystem.

This pursuit will also assess the increasing trend toward the tokenisation of assets and how that could affect financial stability, Knot said.

The recommendations are set to be finalised by July.

The FSB will also make addressing vulnerabilities in the non-bank sector a key priority.

The opacity of activities across physical and derivatives commodities markets hampers the assessment of vulnerabilities and make it difficult to quantify financial stability transmission channels, Knot said.

To mitigate this, the FSB said it would conduct an in-depth study of forms of non-bank leverage that are not always apparent in supervisory and regulatory data.

The FSB’s third key objective in 2023 will be the implementation of the G20 Roadmap to enhance cross-border payments – an endeavour which will be accompanied by the establishment of two new taskforces to strengthen private sector participation in taking the Roadmap forward.

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