- asset activities perform functions and, hence, carry risks, that strongly resemble those of traditional financial activities. think, for example, of the similarities between staking and deposit - taking, or between crypto - lending and securities financing transactions. and so, we believe they should be regulated as such. a number of our recommendations have to do with the vulnerabilities of centralized crypto - asset intermediaries. and i stress'centralized'because, however'de - centralized'the crypto - asset ecosystem claims to be, economic reality tells a different story. in fact, some of these intermediaries already seem to play a systemic role within the cryptoecosystem. that is why we recommend that authorities require a number of things from these entities. for instance to have in place robust governance frameworks and to set up risk management practices. of course, i know that implementation takes time. but i also know it's high time – as i have often heard my british colleagues say – to'crack on '. so, let's prioritise the full and consistent implementation of our high - level recommendations. because in the meantime, people investing in crypto - assets continue to run serious risks. in the meantime, linkages between the crypto - ecosystem and traditional finance may very well continue to grow. so, in the meantime, risks to financial stability can still escalate. 2 / 4 bis - central bankers'speeches there are several ways through which we can prevent crypto - asset volatility from spilling over to the traditional financial system. one important way to do this, is with the full and consistent implementation of the bcbs prudential framework for the treatment of banks'crypto - asset exposures. putting this global framework into practice limits the chance that crypto - volatility reaches banks and hence becomes a threat to financial stability. to keep a close eye on the progress made, the fsb will start monitoring implementation. our first review should be finalized by the end of 2025. and the fsb will not only monitor progress. if we are serious about regulating what is essentially a cross - border phenomenon, we also need to be serious about cross - border cooperation. about information sharing. about working together. this also means that we need to venture outside of the fsb jurisdictions. because several jurisdictions with material crypto - asset activities are not members of the fsb. nevertheless, global financial stability ties all of us together

along these lines could be linked to the supervisory reporting requirement on shareholding in financial firms, for which the threshold could be lowered. finally, an additional option is to register the operating managers of hedge funds. it should be kept in mind, however, that these managers are often already registered elsewhere and operate internationally, making such registration on a national level less useful. in a nutshell, hedge funds have enriched our financial system, but they also pose some systemic concerns. the job of the supervisors is to ensure that appropriate checks and balances are in place. further transparency and disclosure could be helpful in facilitating this process, as it would enhance market surveillance. conclusion i spoke to you about recent trends in the financial industry and the challenges these pose to supervisors. i believe that a further convergence of financial supervision in europe is desirable and indeed already progressing. in this respect, as dnb believes that the interests of market participants should be carefully weighted when deciding upon the architecture of european supervision, the lead supervisor model is a possibility. regarding hedge funds, i stress that indirect supervision is a necessary but not sufficient condition for mitigating the risks they could pose to financial stability. for that reason, further transparency and disclosure by hedge funds is essential in limiting risks of market integrity and uncompromising behaviour that potentially could damage the stability of financial firms. in addressing these important challenges, co - operation amongst market participants and supervisors is key. thank you for your attention.