The MiCA (MiCA) came into force at the beginning of the year. The US, EU, Hong Kong, and the UK have taken into account the FSB's recommendations on regulating cryptocurrencies and stablecoins. However, other jurisdictions are moving more slowly, resulting in significantly different regulations for digital assets across countries, Schindler lamented.

The lack of cooperation between G20 countries on this issue and the uneven adoption of crypto asset standards are weakening oversight. Many countries are implementing cryptocurrency regulations too slowly, the Secretary General complained.

To address this issue, Schindler proposed that regulators exchange information and coordinate actions to reduce the vulnerability of certain jurisdictions to financial risks and prevent the circumvention of strict regulations. The lack of cooperation between countries creates loopholes that crypto companies and investors can exploit by moving to countries with more lenient regulations. Each country is trying to establish its own rules for crypto companies without cooperating with others. This is contributing to the abuse of digital assets in the global market, the FSB Secretary General fears.

Over the past year, the cryptocurrency market has doubled, reaching $3.79 trillion. In addition to investors, banks and other financial institutions are also showing interest in cryptocurrencies. People and companies use crypto assets daily for quick money transfers abroad, Schindler acknowledged. However, he warned that if any major stablecoin loses its peg to the dollar and collapses, panic will ensue globally. Therefore, the risks associated with cryptocurrencies are growing increasingly, Schindler emphasized.

Previously, FSB Chairman Klaas Knot stated that as cryptocurrencies become more integrated into the financial market, especially with the emergence of cryptocurrency exchange-traded funds (ETFs), digital assets could threaten the entire global financial system.