FSB finds significant gaps and inconsistencies in implementation of crypto and stablecoin recommendations

16 October 2025

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Ref: 18/2025

The Financial Stability Board (FSB) today published a Thematic Peer Review on the FSB Global Regulatory Framework for Crypto-asset Activities. The report describes the findings of a peer review to evaluate progress in implementing the FSB’s 2023 global framework, including recommendations on crypto-asset service providers and stablecoin arrangements, data reporting and collection, and cross-border cooperation and coordination.

Crypto-asset markets and regulation are changing rapidly. The review shows that, as of August 2025, jurisdictions have made progress in regulating crypto-asset activities and to a lesser extent global stablecoin arrangements (GSCs). However, it also reveals significant gaps and inconsistencies that could pose risks to financial stability and to the development of a resilient digital asset ecosystem.

While jurisdictions have made notable advancements toward implementing the recommendations on crypto-asset markets and activities, few have finalised their regulatory frameworks for GSCs. Even where regulatory frameworks are finalised, full alignment with the FSB recommendations remains limited, especially with regard to stablecoin arrangements and crypto-asset service providers. Moreover, jurisdictions may continue to update, modify, or refine their frameworks.

The review calls on the FSB and its member jurisdictions to prioritise work in this area and to do more to reach full and consistent implementation. Specifically, it puts forward some recommendations to address outstanding issues in terms of implementation progress, comprehensiveness and consistency, and cross-border cooperation and coordination. “Implementation progress remains incomplete, uneven and inconsistent. This creates opportunities for regulatory arbitrage and complicates oversight of the inherently global and evolving crypto-asset market”, said Arthur Yuen, Deputy Chief Executive of the Hong Kong Monetary Authority and chair of the team that prepared the report.  

Today, the International Organization of Securities Commissions (IOSCO) also released the results of a thematic review on the implementation of IOSCO’s Crypto and Digital Asset framework. A joint information note provides an overview of the scope and the findings of the FSB and IOSCO’s complementary reports.

Notes to editors

The FSB published its global regulatory framework for crypto-asset activities in July 2023. This framework consists of high-level recommendations for the regulation, supervision and oversight of crypto-asset markets and activities and revised high-level recommendations for the regulation, supervision and oversight of global stablecoin arrangements.

The Thematic Review on the FSB Global Regulatory Framework for Crypto-asset Activities evaluates implementation progress by FSB jurisdictions and some volunteering non-FSB jurisdictions but does not assess the effectiveness of the regulatory approaches undertaken by jurisdictions. The review was prepared by a team of experts from FSB member institutions and chaired by Arthur Yuen, Deputy Chief Executive of the Hong Kong Monetary Authority.

The FSB coordinates at the international level the work of national financial authorities and international standard-setting bodies and develops and promotes the implementation of effective regulatory, supervisory, and other financial sector policies in the interest of financial stability. It brings together national authorities responsible for financial stability in 24 countries and jurisdictions, international financial institutions, sector-specific international groupings of regulators and supervisors, and committees of central bank experts. The FSB also conducts outreach with approximately 70 other jurisdictions through its six Regional Consultative Groups.

The FSB is chaired by Andrew Bailey, Governor of the Bank of England. The FSB Secretariat is located in Basel, Switzerland and hosted by the Bank for International Settlements.

Thematic Review on FSB Global Regulatory Framework for Crypto-asset Activities

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The rapid evolution and growth of crypto-asset markets underscores the importance of implementing the FSB's recommendations for crypto-assets and global stablecoins.

This report looks at the implementation of the FSB’s 2023 global regulatory framework for crypto-asset activities.

Based on information as of August 2025, the report describes the progress in implementing the FSB recommendations for crypto-asset activities and service providers, and stablecoins, respectively; focuses on data reporting and disclosures frameworks in place, as well as financial stability risk monitoring approaches across jurisdictions; and describes the tools, progress, and challenges in cross-border cooperation and coordination.

Crypto-asset markets and regulation are evolving rapidly. The review shows jurisdictions have made progress in regulating crypto-asset activities and to a lesser extent global stablecoin arrangements. However, it also reveals significant gaps and inconsistencies that could pose risks to financial stability and to the development of a resilient digital asset ecosystem.

Uneven implementation creates opportunities for regulatory arbitrage and complicates oversight of the inherently global and evolving crypto-asset market. To address this, the report puts forward eight recommendations which are addressed to jurisdictions as they develop their regulatory regimes, and to the FSB, SSBs, and international organisations as they consider further work on the subject.

The International Organization of Securities Commissions (IOSCO) has also undertaken a thematic review on the implementation of IOSCO’s Crypto and Digital Asset framework, focusing on investor protection and market integrity. A joint information note provides an overview of the scope and the findings of the FSB and IOSCO’s complementary reports.

Click and hover over the map to see more details.

Summary of implementation status
Supervisory frameworks
Regulatory reporting
Regulated activities

The use of these maps does not constitute, and should not be construed as constituting, an expression of a position by the FSB regarding the legal status or sovereignty of any territory or its authorities, the delimitation of international frontiers and boundaries and/or the name and designation of any territory, city or area.

Click and hover over the map to see more details.

Summary of implementation status

The use of this map does not constitute, and should not be construed as constituting, an expression of a position by the FSB regarding the legal status or sovereignty of any territory or its authorities, the delimitation of international frontiers and boundaries and/or the name and designation of any territory, city or area.

FSB Chair’s letter to G20 Finance Ministers and Central Bank Governors: October 2025

13 October 2025 | PDF full text (131 KB)

Without timely and consistent implementation, we undermine the resilience of the financial system, leaving it vulnerable to future shocks

This letter was submitted to G20 Finance Ministers and Central Bank Governors (FMCBG) ahead of the G20’s meeting on 15-16 October 2025.

Andrew Bailey underscores the importance of cooperation and multilateral institutions to address the pressures from the challenging global environment.

Amid elevated risks and uncertainty, Mr Bailey highlights the need for implementing global standards and remaining vigilant to emerging threats. To facilitate this, the FSB will enhance its surveillance of vulnerabilities in the financial system, while shifting its focus from policy development to monitoring and facilitating the implementation of agreed reforms.

The letter introduces the reports that the FSB is delivering to the G20, namely:

G20 Implementation Monitoring Review: Interim report

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While there has been much positive progress in implementing the agreed G20/FSB financial reforms, there are important reforms that are not yet fully implemented

In recent years, concerns have arisen about challenges in implementing agreed reforms and that commitment in this regard within jurisdictions may not be as strong as it once was, highlighting the need for increasingly robust implementation monitoring.

At the request of the G20, the FSB is undertaking a strategic review of its work to encourage and monitor the implementation of the agreed G20/FSB post-financial crisis reforms. The review is led by an independent external chair, Randal K. Quarles (former FSB Chair and former Vice Chair for Supervision of the US Federal Reserve Board).

This interim report outlines the FSB’s role in monitoring and reporting on implementation of FSB/G20 financial sector reforms. It looks at the implementation history of the main G20 financial reforms over the past 15 years, including policy measures to address too-big-to-fail, nonbank financial intermediation reforms, OTC derivatives market reforms, Basel III, and recommendations on crypto-asset markets and activities.

The report provides an initial assessment of how well implementation of these recommendations is progressing. In particular, the report shows that full, timely and consistent implementation has not been completely achieved. This is despite the active programme of implementation monitoring by the FSB and standard-setting bodies which has raised awareness and highlighted the importance of implementation of agreed reforms.

The next phase of work will seek to draw lessons as to what is likely to be the most effective approach to implementation monitoring and make recommendations on how the FSB can improve in this respect.

Incomplete reform implementation leaves financial system vulnerable to shocks, warns FSB Chair

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Ref: 17/2025

  • In his letter to G20 Finance Ministers and Central Bank Governors, FSB Chair Andrew Bailey stresses the importance of multilateral cooperation and reform implementation in the current environment of elevated risks and uncertainty.
  • Mr Bailey notes that the rapid evolution of the financial sector calls for enhanced surveillance of emerging risks.
  • An interim report from the FSB’s strategic review of implementation monitoring shows that full, timely and consistent implementation of G20 reforms has not been completely achieved, leaving the financial system vulnerable to shocks.

The Financial Stability Board (FSB) today published a letter from its Chair, Andrew Bailey, to G20 Finance Ministers and Central Bank Governors ahead of their meeting on 15‑16 October. The letter is accompanied by an interim report from the G20 strategic review of the FSB implementation monitoring work, led by former FSB Chair Randal K. Quarles.

In the current environment of elevated risks and uncertainty, Mr Bailey’s letter highlights the importance of global standards and cooperation, not just to prevent crises, but also as a foundation to support sustainable growth.

However, the preliminary results from the G20 strategic review of the FSB implementation monitoring work show that full, timely and consistent implementation of G20/FSB reforms has not been completely achieved, despite the active programme of implementation monitoring by the FSB and standard-setting bodies. Significant inconsistencies in the implementation of global financial reforms can pose risks to market efficiency, financial stability and the integrity of the global regulatory framework.

Mr Bailey reaffirms the FSB remains steadfast in its mandate to promote timely and consistent implementation. The next phase of the G20 strategic implementation monitoring review will reflect on why implementation gaps exist and make specific recommendations to strengthen the FSB’s monitoring and implementation processes.

The rapid evolution of the financial sector, coupled with the uncertain economic and political outlook, calls for enhanced surveillance. The adoption of artificial intelligence in the financial sector or the increasing use of stablecoins for payment and settlement purposes, for example, put a premium on the monitoring of emerging risks. To address this, the FSB will enhance its surveillance capabilities by improving its agility to recognise and respond to emerging vulnerabilities and strengthening engagement with stakeholders, including the private sector. The FSB will also improve the communication of its assessments, to enable public and private sector stakeholders to better mitigate risks.

October G20 deliverables

The FSB is delivering four reports to the G20:

Notes to editors

In 2025, at the request of the South African G20 Presidency, the FSB embarked on a strategic review of its work to encourage and monitor the implementation by member jurisdictions of the agreed G20/FSB financial reforms, with a view to identify any opportunities for improvement. The high level team conducting the review is led by an independent external Chair, Randal K. Quarles (former FSB Chair and former Vice Chair for Supervision of the US Federal Reserve Board). It comprises the following FSB Plenary members: Ayman Al-Sayari, Governor of the Saudi Central Bank; Mark Branson, President of Bundesanstalt für Finanzdienstleistungsaufsicht; Pablo Hernández de Cos, General Manager of the Bank for International Settlements; and Ryozo Himino, Deputy Governor of the Bank of Japan, in his capacity as Chair of the Standing Committee for Standards Implementation.

The FSB coordinates at the international level the work of national financial authorities and international standard-setting bodies and develops and promotes the implementation of effective regulatory, supervisory, and other financial sector policies in the interest of financial stability. It brings together national authorities responsible for financial stability in 24 countries and jurisdictions, international financial institutions, sector-specific international groupings of regulators and supervisors, and committees of central bank experts. The FSB also conducts outreach with approximately 70 other jurisdictions through its six Regional Consultative Groups.

The FSB is chaired by Andrew Bailey, Governor of the Bank of England. The FSB Secretariat is located in Basel, Switzerland and hosted by the Bank for International Settlements.

FSB outlines next steps for authorities on AI monitoring

10 October 2025

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Ref: 16/2025

  • FSB report sets out advice to authorities on how to tackle the challenges related to monitoring adoption of artificial intelligence (AI) in the financial sector.
  • The report identifies a range of direct and proxy indicators to support monitoring of AI adoption and related vulnerabilities in the financial system.
  • The report includes a case study on recent developments in the AI supply chain and implications of financial institutions’ reliance on a few critical third-party providers. These include vulnerabilities related to criticality, concentration, and substitutability.

The Financial Stability Board (FSB) today published a report looking at how authorities are monitoring adoption of AI and related vulnerabilities in the financial sector. The report builds on the FSB’s 2024 report on the Financial Stability Implications of Artificial Intelligence.  

While financial authorities have made progress in understanding AI uses cases and their benefits and vulnerabilities, monitoring efforts are still at an early stage. The report highlights challenges faced by authorities, including data gaps and lack of standardised taxonomies, and identifies a range of indicators to support monitoring AI adoption and related vulnerabilities in the financial system.

Third-party service providers play a critical role in helping financial institutions develop and deploy effective AI applications efficiently. However, such relationships expose financial institutions to operational vulnerabilities, and the growing use of generative AI (GenAI) could lead to critical third-party dependencies. The report highlights the dependence of GenAI on a small number of key suppliers such as specialised hardware, cloud infrastructure, and pre-trained models. This heavy reliance can create vulnerabilities if there are few alternatives available. A case study on GenAI explores these challenges, drawing on the FSB’s third-party risk management toolkit and proposing indicators to assess criticality, concentration, substitutability, and the systemic relevance of third-party AI service providers.  

The FSB encourages national authorities to enhance their monitoring approaches, leveraging the indicators presented in the report. To support these efforts, the FSB will facilitate alignment in taxonomies and indicators through cross-border cooperation.

Notes to editors

The FSB coordinates at the international level the work of national financial authorities and international standard-setting bodies and develops and promotes the implementation of effective regulatory, supervisory, and other financial sector policies in the interest of financial stability. It brings together national authorities responsible for financial stability in 24 countries and jurisdictions, international financial institutions, sector-specific international groupings of regulators and supervisors, and committees of central bank experts. The FSB also conducts outreach with approximately 70 other jurisdictions through its six Regional Consultative Groups.

The FSB is chaired by Andrew Bailey, Governor of the Bank of England. The FSB Secretariat is located in Basel, Switzerland and hosted by the Bank for International Settlements.

Monitoring Adoption of Artificial Intelligence and Related Vulnerabilities in the Financial Sector

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The FSB's 2024 AI report identified several vulnerabilities, including third-party dependencies, market correlations, cyber risks, and challenges in model risk and governance, which may have implications for financial stability

Since the FSB’s 2024 report on the financial stability implications of artificial intelligence (AI), there have been significant developments in the AI ecosystem. These include advancements in AI models, new companies offering more flexible options, more competition in hardware, and global technology providers controlling more parts of the AI supply chain. These developments underscore the importance of robust monitoring efforts and fostering collaboration to address potential vulnerabilities to financial stability effectively. Such efforts are essential to fully harness the potential benefits of AI, including enhanced efficiency, improved regulatory compliance, advanced data analytics, and the creation of more personalised financial products.

The report examines the monitoring approaches currently used by member jurisdictions. It outlines key considerations and potential indicators for tracking AI adoption and associated vulnerabilities. It also includes a case study focusing on monitoring AI-related third-party dependencies and service provider concentration. The report provides high-level considerations to enhance monitoring and address data gaps.

FSB calls for enhanced policy implementation to achieve tangible improvements in cross-border payments

9 October 2025

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Ref: 15/2025

  • The FSB and partner organisations have completed most of the international policy work under the G20 Roadmap for enhancing cross-border payments.
  • Policy initiatives have not yet translated into the desired real-world gains for end-users, though there have been improvements in some areas.
  • In order to fulfil the G20 objectives, the FSB and partner organisations will work with key stakeholders to support implementation of actions under the Roadmap at the jurisdictional level.  

The Financial Stability Board (FSB) today published a consolidated progress report for 2025 on the actions taken by the FSB, the Bank for International Settlements Committee on Payments and Market Infrastructures (CPMI) and other partner organisations under the G20 Roadmap for Enhancing Cross-Border Payments. To more effectively monitor progress, the annual progress report has been integrated with the report on key performance indicators (KPIs).

Over the past year several significant milestones have been achieved. These include the FSB’s recommendations to level the playing field between bank and non-bank payment services providers and to mitigate data-related frictions in cross-border payments, and the Financial Action Task Force (FATF)’s revision of standards for data in cross-border payments (Recommendation 16 on Payment Transparency). While the majority of the Roadmap actions have been completed, these efforts have not yet translated into tangible improvements for end-users at the global level.

It is unlikely that satisfactory improvements at the global level will be achieved in line with the 2027 Roadmap timetable. The global speed of wholesale payments has increased, possibly laying the foundation for faster retail payments and remittances in the future. The speed of remittances has also improved globally, which means those end-users relying on financial support from family members abroad are receiving payments more quickly. However, the average global cost of such payments remains high, notwithstanding some improvements in the most expensive regions.

There continues to be significant variations across regions. More needs to be done at the regional and jurisdictional level to turn the international policy work into real-world gains for end-users and to support economic growth. Individual jurisdictions need to take practical steps to implement measures that will have downstream benefits. Private sector stakeholders should also explore and implement changes to improve the end-user’s cross-border payments experience.

“The FSB and South African G20 Presidency remain committed to achieving the goals of the Roadmap and urge the public and private sectors to make tangible improvements to domestic payment systems as the first and last mile of a cross-border payment depend on domestic payment rails”, said Lesetja Kganyago, Governor of the South African Reserve Bank and Co-Chair of the FSB Cross-border Payments Coordination Group.

Over the coming year, the FSB and other partner organisations will focus on enhancing monitoring and supporting implementation of the agreed policy recommendations under the G20 Roadmap. “We are committed to facilitating implementation of agreed policy recommendations and to engage actively with the private sector, G20 and non-G20 jurisdictions to make this happen,” said Fabio Panetta, Governor of Banca d’Italia, Chair of the CPMI and Co-Chair of the FSB Cross-border Payments Coordination Group.

Notes to editors

In 2020, the Saudi Arabian G20 Presidency made enhancing cross-border payments a priority and asked the FSB to develop and coordinate a G20 Roadmap. To give impetus to this work, the FSB, in collaboration with the CPMI and other partner organisations, developed a prioritisation plan that focused on actions that would most effectively contribute to achieving the goals of the Roadmap for faster, cheaper and more transparent and accessible cross-border payments. To give ambition and accountability to the Roadmap’s goals, in 2021, the G20 endorsed a set of global quantitative targets, the majority of which are set for end-2027. To more effectively monitor progress, the annual progress report has been integrated with the report on KPIs measuring the end-user experience.

The FSB coordinates at the international level the work of national financial authorities and international standard-setting bodies and develops and promotes the implementation of effective regulatory, supervisory, and other financial sector policies in the interest of financial stability. It brings together national authorities responsible for financial stability in 24 countries and jurisdictions, international financial institutions, sector-specific international groupings of regulators and supervisors, and committees of central bank experts. The FSB also conducts outreach with approximately 70 other jurisdictions through its six Regional Consultative Groups.

The FSB is chaired by Andrew Bailey, Governor of the Bank of England. The FSB Secretariat is located in Basel, Switzerland and hosted by the Bank for International Settlements.

G20 Roadmap for Cross-border Payments: Consolidated progress report for 2025

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Despite significant progress, efforts have not yet translated into tangible improvements for end-users at the global level.

In 2020, the G20 launched a Roadmap to make cross-border payments faster, cheaper, and more transparent and inclusive. To give ambition and accountability to the Roadmap’s goals, in 2021, the G20 endorsed a set of global quantitative targets, most of which are set for end-2027. To more effectively monitor progress, the annual progress report has been combined with the report on key performance indicators (KPIs).

Over the past year, several milestones have been achieved, marking the end of the major policy development initiatives. However, these efforts have not yet translated into tangible improvements for end-users at the global level. The KPIs for 2025 show only a slight improvement at the global level since the KPIs were first calculated in 2023. It is unlikely that satisfactory improvements at the global level will be achieved in line with the 2027 Roadmap timetable.

At the global level, the KPIs indicate that access to cross-border payments remain broad and the global speed of wholesale cross-border payments has improved, possibly laying the foundation for faster retail payments and remittances in the future. The speed of remittances has also improved globally, which means those end-users relying on financial support from family members abroad are receiving payments more quickly. However, the average global cost of such payments remains sticky, although some improvements have been made in the most expensive regions.Therewas slight improvement in transparency of information to end-users in some areas, but current quantitative data remains insufficient to form a complete picture. Over the coming year, the FSB and other partner organisations will focus on enhancing monitoring and supporting implementation of the international policies that have been agreed under the G20 Roadmap.

FSB Regional Consultative Group for Asia meets in Sydney

8 October 2025

The Financial Stability Board (FSB) Regional Consultative Group for Asia met on 7-8 October in Sydney, hosted by the Reserve Bank of Australia.
The meeting, which brings together senior officials from central banks, financial authorities and regulatory bodies in the region, covered:

  • Global financial market developments and the outlook for financial stability in the region.
  • Crisis preparedness and resolution planning for financial institutions.
  • Recent developments in digital assets and stablecoins, and how authorities are responding.
  • Operational resilience and how operational failures can interact with traditional financial risks such as liquidity risk.