Global Monitoring Report on Non-Bank Financial Intermediation 2024

16 December 2024 | PDF full text (8 MB)

The size of the NBFI sector increased 8.5% in 2023, more than double the pace of banking sector growth (3.3%), raising the NBFI share of total global financial assets to 49.1%.

The comprehensive monitoring of global trends, vulnerabilities, and innovations of the non-bank financial intermediation (NBFI) sector is a key part of the FSB’s ongoing efforts to enhance financial system resilience.This report describes broad trends in financial intermediation across 29 jurisdictions that account for around 88% of global GDP, before narrowing its focus to the subset of NBFI activities that may be more likely to give rise to vulnerabilities.

In 2023, the size of the NBFI sector increased 8.5%, more than double the pace of banking sector growth (3.3%), raising the NBFI share of total global financial assets to 49.1%. The growth of the NBFI sector was largely attributed to higher valuations for mark-to-market instruments, which rebounded after a significant decrease in 2022. Investor inflows to NBFI entities also contributed to the increase.

All NBFI subsectors grew at rates around two times their five-year average in 2023. The assets of almost all entity types increased, with investment funds continuing to drive changes in the asset levels of the NBFI sector. Money market fund (MMF) assets grew in the majority of reporting jurisdictions, driven primarily by increased flows as a result of higher MMF yields relative to bank deposits as well as, in part, by the March 2023 banking turmoil in the United States and Switzerland.

The financial assets of entities classified in the FSB’s narrow measure – the subset of NBFI engaging in credit intermediation and that may give rise to financial stability risks – increased 9.8% to reach $70.2 trillion, the highest level ever recorded in this exercise. The narrow measure reflects an activity-based “economic function” (EF) assessment of risks.

Financial institutions’ borrowings continued to increase in 2023, despite the higher interest rate environment. Borrowings from the NBFI sector increased at a slightly faster pace than that of banks (4.1% compared to 3.4%, respectively). Captive financial institutions and broker-dealers were the entity types among the NBFI sector with the largest amount of total borrowings, both at around $6.3 trillion. Real estate investment trusts (REITs), finance companies, broker-dealers, and structured finance vehicles were the entity types with the largest levels of financial leverage.

Most NBFI vulnerability metrics remained stable over the past year, with fixed income and mixed funds showing high degrees of liquidity transformation, while finance companies, broker-dealers and SFVs displayed relatively high levels of leverage. To complement the monitoring of vulnerabilities, jurisdictions also provided information on the availability of policy tools for lending activities dependent on short-term funding (predominantly finance companies), and intermediation activities dependent on short-term funding (primarily broker-dealers), detailed in Box 3-1 of the report.

The report also includes, for the first time, data on non-bank fintech lending from some of the participating jurisdictions on a best-efforts basis. This addresses part of the third phase of the G20 Data Gaps Initiative, which includes a recommendation to close data gaps related to non-bank fintech lending.

Rebecca Maher, Member of FSB Secretariat, presents the main findings of the FSB Global Monitoring Report on Non-Bank Financial Intermediation 2024.

Datasets from the report are publicly available for use in accordance with the FSB’s normal terms and conditions.

FSB reports strong growth in non-bank financial intermediation in 2023

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Ref: 39/2024

  • Annual monitoring exercise shows the non-bank financial intermediation (NBFI) sector grew at more than double the pace of the banking sector in 2023, led by investor inflows and higher asset valuations.
  • Most vulnerability metrics of NBFI entities involved in credit intermediation activities that may pose bank-like financial stability risks remained stable.
  • FSB report also includes data on non-bank fintech lending for the first time. The outstanding amounts reported by 10 jurisdictions totalled around $42 billion.

The Financial Stability Board (FSB) today published its annual Global Monitoring Report on Non-Bank Financial Intermediation. The report describes broad trends in financial intermediation in 2023 across 29 jurisdictions that account for around 88% of global GDP, before narrowing its focus to the subset of NBFI activities that may be more likely to give rise to vulnerabilities.

The main findings from this year’s monitoring exercise include:

The report also includes data on non-bank fintech lending for the first time, in response to a recommendation in the third phase of the G20 Data Gaps Initiative to close data gaps related to this activity. 10 jurisdictions reported total non-bank fintech lending of around $40 billion, or 1% of the total loan assets held by their OFIs.

Notes to editors

The FSB created a system-wide monitoring framework to track developments in NBFI in response to a G20 Leaders’ request at the Seoul Summit in 2010. The objective of the monitoring exercise is to identify the build-up of vulnerabilities in NBFI and initiate corrective actions where necessary.

Complementing this monitoring, the FSB has been coordinating the development of policies, together with its member standard-setting bodies and international organisations, to mitigate potential vulnerabilities associated with NBFI. Progress under the FSB work programme to enhance resilience in NBFI is detailed in the FSB’s July 2024 report.

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 Klaas Knot, President of De Nederlandsche Bank. The FSB Secretariat is located in Basel, Switzerland and hosted by the Bank for International Settlements.

Recommendations to Promote Alignment and Interoperability Across Data Frameworks Related to Cross-border Payments: Final report

12 December 2024 | PDF full text (407 KB)

Summary of document history

Summary of document history

The transfer of data across borders is essential to the functioning of the cross-border payments system.

Based on the positive feedback received during consultation, this report sets out final recommendations for promoting alignment and interoperability across data frameworks (i.e. the laws, rules, and regulatory requirements for collecting, storing and managing data) applicable to cross-border payments. The recommendations aim to mitigate unintended frictions that may pose significant challenges to improving the cost, speed, transparency and accessibility of cross-border payments. At the same time, they uphold the underlying objectives of data frameworks (such as preserving the security of transactions, meeting anti-money laundering and combating the financing of terrorism (AML/CFT) and sanctions objectives, and protecting the privacy of individuals).

To help ensure that the recommendations are taken forward in a coordinated manner, the FSB will establish a Forum on Cross-Border Payments Data bringing together a diverse set of public sector stakeholders relevant to cross-border payments, including payments, AML/CFT, sanctions, and data privacy and protection experts.

The recommendations to promote alignment and interoperability across data frameworks related to cross-border payments fall into four broad categories:

  • Addressing uncertainty about how to balance regulatory and supervisory obligations
  • Promoting the alignment and interoperability of regulatory and data requirements related to cross-border payments
  • Mitigating restrictions on the flow of data related to payments across borders
  • Reducing barriers to innovation
FSB Recommendations

Recommendation 1: The FSB, in collaboration with the OECD, FATF and the GPA, should establish a Forum for collaboration on policymaking, with a view to resolving data framework frictions and facilitating exchanges of ideas and analysis, on cross border payments and related data issues. The Forum would also include relevant stakeholders from international organisations (IOs), SSBs, data protection and privacy authorities (DPAs) and regulatory agencies. The Forum should develop channels for regular engagement with industry stakeholders involved in cross border payments.

Recommendation 2: Relevant authorities, international organisations and standard-setting bodies should work within the Forum to identify, map and address possible areas of divergence and inconsistency in data frameworks relevant to cross-border payments and facilitate discussion among authorities on how to make these requirements more consistent while meeting AML/CFT and sanctions objectives, preventing fraud, and protecting data privacy objectives. Forum participants should take into consideration successful examples from other areas. The Forum should also consider a process to ensure that new potentially emerging divergences and inconsistencies are addressed as they arise.

Recommendation 3: National authorities should encourage the adoption by market participants, including central banks and payment system operators, of the Bank for International Settlements’ Committee on Payments and Market Infrastructure (CPMI)’s harmonised ISO 20022 data requirements for cross-border payments.

Recommendation 4: To avoid the inconsistent application of cross-border payment-related data requirements for AML/CFT compliance, national authorities should implement FATF Recommendation 16 and provide clear and accessible guidance on any additional data required to comply with local AML/CFT regulations. They should also use applicable global data standards, where available.

Recommendation 5: Sanctions authorities should take steps to standardise the way sanctions lists are
formatted, shared and updated. The use of sufficient and standardised identifiers should be encouraged
to better facilitate identification, reduce false positives, and promote links between data sources.

Recommendation 6: National authorities should support the enhanced use of standardised global
identifiers, such as the Legal Entity Identifier (LEI), including by taking steps to emphasise that the use
of standardised global identifiers in cross-border payments is best practice.

Recommendation 7: Building on its ongoing evidence-based and multi-stakeholder work on crossborder data flows, the OECD, together with data privacy and protection authorities and relevant crossborder payments stakeholders, should explore different options to enable faster, less costly, more transparent and more accessible cross-border payment-related data flows while ensuring high levels of privacy protection.

Recommendation 8: Building on the work outlined in Recommendation 7, relevant authorities should adopt and enforce consistent standards in domestic privacy and data protection regimes applicable to payment processing and identify appropriate cross-border data transfer mechanisms.

Recommendation 9: National authorities should provide a clear and reasonable legal pathway for cross-border payments market participants to transmit across borders data related to payment processing, risk management, or fraud and financial crime prevention. Where applicable, national authorities should provide alternatives to requirements to use local computing facilities.

Recommendation 10: National authorities should establish clear and transparent mechanisms to allow cross-border payments market participants to share data with foreign regulatory and supervisory authorities, as appropriate. Cross-border payments market participants should ensure relevant regulatory and supervisory authorities have full and timely access to data in accordance with their respective mandates.

Recommendation 11: When designing their data-related policies, relevant authorities should consider potential impacts on consumers and cross-border payments market participants. In particular, jurisdictions should consider how data restrictive policies, including data localisation and data mirroring requirements, could affect the cost, speed, transparency and accessibility of cross-border payments.

Recommendation 12: National authorities and international standard setters should promote innovation that may offer solutions to data frictions in cross-border payments by taking steps to foster public-private sector partnerships, facilitate dialogue with innovators, create regulatory frameworks that support innovation, and share best practices with international counterparts.

Jennifer Fowler, Member of the FSB Secretariat, presents the FSB recommendations to promote alignment and interoperability across data frameworks related to cross-border payments.

Recommendations to Promote Alignment and Interoperability Across Data Frameworks Related to Cross-border Payments: Overview of responses to consultation

| PDF full text (107 KB)

Summary of document history

Summary of document history

On the 16 July the FSB published the consultative report Recommendations to Promote Alignment and Interoperability Across Data Frameworks Related to Cross-border Payments.

The FSB received 36 responses (including six confidential). Respondents included banks, card networks, non-bank payment service providers, financial industry trade associations, private sector entities providing corporate registration services, public sector entities, and data privacy and protection advocacy groups. The respondents were geographically diverse, including entities located in Africa, Asia, Australia, the United Kingdom, the United States, and the European Union.

This document summarises the comments raised in the public consultation and sets out the main changes made to the final report in order to address them.

Recommendations for Regulating and Supervising Bank and Non-bank Payment Service Providers Offering Cross-border Payment Services: Final report

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Summary of document history

Summary of document history

Inconsistencies in the legal, regulatory, or supervisory regimes applied to banks and non-banks that provide cross-border payment services can be an obstacle towards achieving cheaper, faster and easily accessible cross-border payments.

Individual jurisdictions have taken varying and sometimes inconsistent approaches to regulating and supervising bank and non-bank payment services providers (PSPs) offering cross-border payments. Such inconsistencies can result in complex compliance processes, increasing the costs and reducing the processing speed.

This report discusses the role of banks and non-banks in cross-border payments, as well as the relevant frictions and risks. The report sets out policy recommendations to strengthen consistency in the regulation and supervision of banks and non-banks in their provision of cross-border payment services in a way that is proportionate to the risks associated with such activities. This approach aims to  reduce the prospect of regulatory arbitrage by establishing a level playing field that takes into account differences in business models and risk profiles.

FSB Recommendations

Recommendation 1: Competent authorities should conduct risk assessments of the cross-border payments sector, the aim of which should be to identify, understand and assess the risks associated with PSPs active within the authorities’ jurisdiction in cross-border payment services.

Recommendation 2: Based on the findings of the payment sector risk assessments, competent authorities should review existing regulatory, supervisory, and oversight regimes to ensure that the regimes: 1) address all the key risks identified; 2) are proportional to the risks identified, with particular attention to operational risks (e.g. fraud, cyber and third-party risks), resilience and financial crime risks, and 3) are applied consistently and in coordination with all relevant competent authorities across the sector. Competent authorities should consider undertaking or seeking adjustments to laws, regulations, and supervision and oversight models as needed.

Recommendation 3: Competent authorities’ regulatory and supervisory regimes related to cross-border payments should be designed to promote consumer protection and address consumer harms.

Recommendation 4: Competent authorities should develop, publish, and communicate payments-related supervisory and oversight expectations to promote safe and efficient payment services, including the guidance relating to application of the risk-based approach.

Recommendation 5: Competent authorities should: 1) review licensing or registration criteria for risk-proportionate requirements, including measures to promote consumer protection and address new services such as account information services, payment initiation services, digital wallets, and the provision of services through agents and other intermediaries; and, if necessary, 2) adjust the licensing or registration processes for PSPs to incorporate requirements such as conducting fit and proper tests, reviews of AML/CFT compliance programs and oversight of agents and other intermediaries.

Recommendation 6: Competent authorities both within and across jurisdictions should, where applicable, implement or expand cooperative arrangements for information sharing to support access to relevant information and data for comprehensively assessing risks as well as the sources of frictions and, when appropriate, supporting regulatory or supervisory action.

Recommendations for Regulating and Supervising Bank and Non-bank Payment Service Providers Offering Cross-border Payment Services: Overview of responses to consultation

| PDF full text (156 KB)

On the 16 July the FSB published the consultative report Recommendations for Regulating and Supervising Bank and Non-bank Payment Service Providers Offering Cross-border Payment Services.

The FSB received 21 responses, from North America, Asia-Pacific and Europe. The responses received spanned various entities in the cross-border payments ecosystem such as banks, non-bank payment service providers (PSPs), credit card schemes and clearing houses.

This document summarises the comments raised in the public consultation and sets out the main changes made to the final report in order to address them.

FSB issues recommendations related to data flows and regulation and supervision of cross-border payments

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Ref: 38/2024

  • Recommendations address frictions in data flows related to cross-border payments and promote a level playing field between bank and non-bank providers of payment services.
  • Recommendations form part of the FSB’s efforts to prioritise work and strengthen private-sector participation under the G20 cross-border payments roadmap.
  • The FSB is inviting market stakeholders to join its Taskforce on Legal, Regulatory, and Supervisory matters and is establishing a new Forum on Cross-Border Payments Data to take these recommendations forward in a coordinated manner and encourage cross-sectoral collaboration.

The Financial Stability Board (FSB) published today its finalised recommendations to promote greater alignment in data frameworks related to cross-border payments and consistency in the regulation and supervision of bank and non-bank payment service providers. These recommendations advance key actions from the G20 Roadmap to address legal, supervisory, and regulatory issues in cross-border payments. As part of these efforts and to enhance private sector engagement, the FSB is inviting market stakeholders in cross-border payments to join its Taskforce on Legal, Regulatory, and Supervisory matters (LRS Taskforce).

Policy recommendations to promote greater alignment and interoperability in data frameworks related to cross-border payments

The transfer of data across borders is essential to the functioning of cross-border payments. Frictions from data frameworks (i.e. the range of laws, rules and regulatory requirements for collecting, storing and managing data) can pose significant challenges to improving the cost, speed, transparency and accessibility of cross-border payments. The FSB’s recommendations aim to address identified frictions, while maintaining the safety and security of cross-border payments and upholding the objectives of protecting the privacy of individuals and fostering innovation. Identified frictions include different data requirements in payments that interfere with the smooth processing of cross-border payments, restrictions on data sharing that impede the ability to safely process cross-border payments, and increased costs due to data storage and handling requirements.

To take forward these recommendations in a coordinated manner and to identify emerging issues that should be addressed, the FSB is establishing a Forum on Cross-Border Payments Data. The Forum will be comprised of public-sector stakeholders covering payments, anti-money laundering and countering the financing of terrorism (AML/CFT), sanctions, and data privacy and protection. The Forum will also establish a private sector advisory group.

Policy recommendations to strengthen consistency in regulating and supervising banks and non-banks providing cross-border payment services

Advances in technology have led to an increasing number and variety of payment services providers (PSPs) and the services they offer. In the absence of comprehensive international standards applicable to non-bank PSPs’ provision of cross-border payment services, jurisdictions have taken varying approaches to regulating and supervising bank and non-bank PSPs offering these services. These recommendations aim to ensure quality and consistency in the legal, regulatory and supervisory regimes of banks and non-banks in their provision of cross-border payment services in a way that is proportionate to the risks associated with such activities. This approach reduces the likelihood of regulatory arbitrage by establishing a level playing field for both banks and non-bank PSPs, despite differences in business models and risk profiles. Greater consistency in the regulation and supervision of banks and non-banks providing cross-border payment services can foster lower costs, higher delivery speed, and better financial access and transparency.

Notes to editors

Both reports reflect public feedback received by the FSB on the consultative versions issued in July 2024. The FSB also published today overviews of the responses to these public consultations.

The G20 has made enhancing cross-border payments a priority to achieve faster, cheaper, more transparent and more inclusive cross-border payments, while maintaining their safety and security. In 2020, the FSB, in coordination with the Bank for International Settlements’ Committee on Payments and Market Infrastructures (CPMI) and other international organisations and standard-setting bodies, developed a Roadmap to address these challenges. In October 2022, G20 Finance Ministers and Central Bank Governors endorsed a plan for prioritising work under the Roadmap and for enhancing engagement with the private sector and jurisdictions beyond the G20. In February 2023, the FSB outlined three priority themes to drive the Roadmap forward. The themes cover: payment system interoperability and extension; legal, regulatory and supervisory frameworks; and cross-border exchange and message standards.

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 Klaas Knot, President of De Nederlandsche Bank. The FSB Secretariat is located in Basel, Switzerland and hosted by the Bank for International Settlements.

The Financial Stability Board invites cross-border payments market stakeholders to join its Taskforce on Legal, Regulatory and Supervisory matters

The Financial Stability Board (FSB) invites firms that offer cross-border payment services and relevant industry associations to nominate senior representatives to serve on the FSB’s Taskforce on Legal, Regulatory, and Supervisory matters (LRS Taskforce).

Extensive engagement with the private sector has been integral to achieving the goals of the G20 Roadmap for faster, cheaper, more transparent and accessible cross-border payments. In early 2023, the FSB established the LRS Taskforce to serve as a mechanism for regular engagement between the public and private sectors. The LRS Taskforce is chaired by Carolyn Rogers, Senior Deputy Governor of the Bank of Canada.

The LRS Taskforce has provided input and feedback on a number of key policy issues for cross-border payments, including issues arising from data frameworks and bank and non-bank supervision in cross-border payments. In addition, the LRS Taskforce has contributed to the identification of areas of particular relevance for the FSB’s work programme in 2025.

Now that much of the policy development is completed, focus will turn to implementation of the policy recommendations as well as to addressing any other legal, regulatory and supervisory frictions that have been identified as significant impediments to achieving the goals of the G20 Roadmap. The FSB is renewing the LRS Taskforce membership to support this work.

The renewed taskforce is expected to have 30-40 members (approximately two-thirds private sector and one-third public sector). The FSB is seeking to ensure wide representation in terms of jurisdictions, regions, private-sector institutional types and business models, public-sector authorities and international organisations. The taskforce will meet approximately four times a year; the timing of the meetings will be driven by the FSB’s cross-border payments work plan. Most meetings will be virtual but at least one meeting will be held in person each year.

Private-sector nominees should be senior managers with significant experience and direct responsibilities related to cross-border payments in the areas of compliance, legal, cross-border operations or risk management. Nominees should be able to commit sufficient time and organise resources from within their organisation to support the work of the LRS Taskforce until at least the end of 2026.

The Taskforce on Cross-border Payments Interoperability and Extension (PIE Taskforce) of the Bank for International Settlements’ Committee on Payments and Market Infrastructures (CPMI) is complementary to the LRS Taskforce. Institutions on the PIE taskforce may be considered also for LRS membership.

FSB notes significant progress in monitoring, regulating and supervising crypto-asset activities in France

11 December 2024

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Ref: 37/2024

  • Peer review highlights significant progress by the French authorities to enhance the monitoring, regulation and supervision of crypto-asset markets in recent years.
  • France’s PACTE Law has successfully brought most of crypto activities within the regulatory perimeter.
  • Review recommends further steps to facilitate the transition to the EU MiCAR regime, strengthen enforcement and promote cross-border cooperation and information sharing.

The Financial Stability Board (FSB) today published its Peer Review of France, examining France’s regulation and supervision of crypto-asset activities.

The French authorities have made significant progress in monitoring, regulating and supervising crypto-assets in recent years. They successfully brought a large part of the crypto-asset market into the regulatory perimeter through the 2019 Action Plan for Business Growth and Transformation (PACTE Law). The PACTE Law introduced registration and licensing regimes for digital asset service providers, enabled authorities to build up their regulatory expertise in crypto-assets, and fostered regulatory literacy and awareness for the industry.

Notwithstanding these achievements, the review notes further steps can be taken to strengthen the regulatory framework for crypto-assets and stablecoins. These include: facilitating a smooth transition to the European Union’s Markets in Crypto-Asset Regulation (MiCAR); strengthening enforcement efforts; and promoting cross-border cooperation and information sharing.   

Ryozo Himino, Chair of the FSB’s Standing Committee on Standards Implementation (SCSI) that oversaw the preparation of the peer review said: “Regulatory authorities around the world are in the process of implementing the FSB’s 2023 regulatory framework for crypto-asset activities. The French authorities’ experience in introducing and adjusting their framework for crypto-assets and stablecoins will give those authorities invaluable insights on possible implementation challenges and ways to address them.”  

Notes to editors

The peer review focused on French authorities’ steps to implement reforms for the regulation and supervision of crypto-asset activities. It also took into account the recent adoption of the FSB’s high-level recommendations for the regulation, supervision, and oversight of crypto-asset activities and markets and global stablecoin arrangements, and France’s ongoing transition to the European Union’s Markets in Crypto-Asset Regulation (MiCAR).

The report was prepared by a team of experts from FSB member institutions and led by Emily Shepperd, Chief Operating Officer and Executive Director, Authorisations, Financial Conduct Authority, United Kingdom. The review benefited from dialogue with the French authorities and market participants as well as the FSB’s Standing Committee on Standards Implementation (SCSI).

FSB member jurisdictions have committed to undergo periodic peer reviews to evaluate their adherence to international financial standards. To fulfil this responsibility, the FSB has established a regular programme of country and thematic peer reviews of its member jurisdictions. As part of this commitment, France volunteered to undergo a peer review in 2023-2024. A schedule of country peer reviews, as well as all completed peer review reports, are available on the FSB website.

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 Klaas Knot, President of De Nederlandsche Bank. The FSB Secretariat is located in Basel, Switzerland and hosted by the Bank for International Settlements.

Peer Review of France

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France has successfully managed to bring a large part of the crypto-asset market within the regulatory perimeter.

This Peer Review of France looks at the country’s progress in regulating and supervising crypto-asset activities, including stablecoins.

In France, the main use cases of crypto-assets to date are related to investment and trading, with stablecoins being used mostly as a medium of exchange for crypto-to-crypto transactions. Their use for payments remains limited, and so are the direct links between traditional finance and the crypto-asset market.

The French authorities have made significant progress in monitoring, regulating and supervising crypto-asset markets. They have established a regular mechanism to monitor market developments and risk trends as part of the financial stability framework of the Banque de France. They also successfully brought a large part of the crypto-asset market into the regulatory perimeter by introducing registration and licencing for digital asset service providers, and have enhanced their regime over time.

Notwithstanding these achievements, further steps can be taken to strengthen the regulatory framework for crypto-assets and stablecoins. These include facilitating a smooth transition to the European Union’s Markets in Crypto-Asset Regulation (MiCAR) regime, strengthening enforcement efforts and promoting cross-border cooperation and information sharing.