The World Federation of Exchanges (WFE), the global industry group for exchanges and CCPs, began developing common taxonomy for stablecoins which will also cover crypto-assets more broadly. The development of taxonomy will create common regulatory classifications of the sablecoins in response to their recent growth before they fragment any further.
The WFE asked the Financial Stability Board to create and take up global taxonomy to help drive a common understanding of whether a global stablecoin (GSC) or crypto-asset fits a certain classification or definition.
The classification would reduce the difference between jurisdictions and remove regulatory dissonance. With a periodic review of the taxonomy it an be ensured that that forms of GSC and crypto-assets can be incorporated and regulated accordingly.
WFE called FSB to consider the following fields to further work on:
- Developing classifications through a taxonomy for all GSC and crypto-assets
- Application of the recommendations to all crypto-assets
- Applying the cross-border co-operation recommendations and information-sharing requirements to the supervision of all those trading GSC/crypto-assets
