Global watchdogs flag risks as digital assets move deeper into banking

TL;DR: The FSB urged the G20 to coordinate oversight of stablecoins and AI risks, Australia’s ASIC proposed extending and widening its CFD rules to cover digital-asset settlement, and South Korea’s Jeonbuk Bank reportedly began lending against Bitcoin collateral. As digital assets increasingly intertwine with traditional finance, regulators are working overtime to address emerging risks while also grappling with the rapidly evolving threats posed by artificial intelligence (AI). At the same time, private-sector enthusiasm for financial innovation shows no signs of waning, as financial institutions explore new ways to engage with digital assets within the existing system.