Switch to seedless. Get 30% off with SWITCH30 till Oct 21OJK, BI, and FSB highlight global crypto and AI risks
6.6 Regulation OJK and BI boost global banking supervision on crypto and AI risks. FSB warns of stablecoin regulatory gaps and urges cross-border cooperation to prevent systemic risks.
The Financial Services Authority (OJK) and Bank Indonesia (BI) are intensifying global banking supervision cooperation in response to rising risks from digital transformation, crypto assets, and artificial intelligence (AI). This initiative was discussed during an international meeting in Bali. Meanwhile, the Financial Stability Board (FSB) has warned that the crisis management framework for global stablecoins remains untested under severe stress. The FSB highlighted regulatory gaps and risks, particularly in multi-issuer stablecoin models, and emphasized the need for improved cross-border cooperation and information sharing to address potential stablecoin failures. The FSB also called on G20 countries to strengthen supervision and ensure the responsible adoption of AI in the financial sector. With only a few jurisdictions finalizing stablecoin regulations, systemic risks could spill over into traditional markets through fund withdrawals and reserve asset sales. The FSB urges stronger international regulation and supervision to maintain global financial stability.
