The FSB has released a report setting out high-level recommendations for the regulation and supervision of so-called “global stablecoins” (i.e., those operating across multiple jurisdictions and in widespread use). Flexible and proportionate to the risks, this approach seeks to minimise the possibility of arbitration while adhering to the “same business, same risk, same rules” principle. The FSB recommends using the existing international rules and standards, albeit adapted in practice to the services provided and the features and risks of global stablecoins. It highlights the importance of ensuring suitable governance and proper transparency around these products for users and the market, including, in particular, whether or not users enjoy redemption rights against the issuer or the reserve assets. It also stresses that the authorities should not allow such arrangements to be launched before confirming that all of the relevant requirements have been met. 27  C. Conesa. (2019), “Bitcoin: a solution for payment systems or a solution in search of a problem?”, Occasional Paper No 1901, Banco de España. 28 Chainalysis (2022), “2022 Crypto Crime Report”, April, available at: https://go.chainalysis.com/2022-Crypto-CrimeReport.html. 29  See, for example, Statista (2021), “Number of identity-verified cryptoasset users from 2016 to 2021”, available at: https://www.statista.com/statistics/1202503/global-cryptocurrency-user-base/. 30  https://www.fsb.org/2020/10/regulation-supervision-and-oversight-of-global-stablecoin-arrangements/ 8  Currently, the FSB continues to work both on identifying and resolving possible regulatory gaps relating to global stablecoins and on regulatory approaches relating to unbacked crypto-assets, such as Bitcoin.

Cryptoassets represent a new competitive threat for traditional transactional services, with some variants (such as stablecoins) also potentially compromising deposit-taking activities as 17  See “Assessment of Risks to Financial Stability from Crypto-assets”. FSB (2021). 18  https://www.bde.es/f/webbde/Secciones/Publicaciones/InformesBoletinesRevistas/InformesEstabilidadFinancera/22/F SR_2022_1_ChE.pdf 19  This extends to all matters concerning compliance with the tax obligations associated with investing in these markets. With this in mind, Spain has announced new reporting obligations that are expected to enter into force in 2023. The treatment of such assets for the purposes of the various different taxes has to date been resolved in the form of requests for binding rulings from the Directorate General of Taxation. 20  See “Research Note: Cryptoasset consumer research 2021”. FCA (2021). 21  Specifically, even though half were University graduates, almost two thirds of the crypto-asset owners interviewed admitted to having limited or zero understanding of the most basic features of the associated risks and rights. See “Cryptoassets in Asia: consumer attitudes, behaviour and experiences”. OECD (2019). 22  See “Cryptic Connections: Spillovers between Crypto and Equity Markets”. Iyer, T. (2022), IMF Global Financial Stability Notes, No. 2022/01. 6  they intend to become a store of value. As highlighted in some recent papers, a disorderly disintermediation in the event of an accelerated substitution of bank deposits for such digital assets could ultimately affect the banking sector’s net financing capacity and lead to credit being rationed or becoming noticeably more expensive.