FSB Will Establish Global Guidelines For Crypto Regulation

FSB–worldwide financial watchdog took action in response to the FTX crash and issued suggestions to regulate the cryptocurrency market in the beginning of 2023.

According to reports, the Financial Stability Board (FSB), a global agency that keeps an eye on the financial system, will be outlining regulations for cryptocurrencies in 2019. Dietrich Domanski, the departing FSB secretary-general, claimed that recent occurrences have shown that it is “essential to address concerns” in the area. He clarified:

“Many crypto market participants argue that authorities are hostile to innovation. I would say so far, authorities have been fairly accommodating.”

Domanski further stated that if cryptocurrency initiatives are providing services similar to those provided by banks, the purpose of developing recommendations for crypto regulation will be to hold those projects “to the same standards as banks.”

Global politicians have come under fire for allowing FTX to grow before imploding following the recent failures of significant cryptocurrency projects like Terraform Labs and FTX exchange. The FSB official said that these regulations and standards would have averted tragedies like the collapse of the Terra and FTX because they would have complied with the “conditions for sound governance.”

FSB intends to develop an implementation schedule for the initial proposals

Several national and regulatory bodies may enact the rules that the FSB has approved after making recommendations.

Sam Bankman-Fried, the former CEO of FTX, was recently detained by the Royal Bahamas police and will soon be extradited to the US. Following formal notification that Bankman-Fried has been charged with a crime by the US government, the arrest has taken place. Money laundering, wire and securities fraud, and conspiracy to commit wire and securities fraud are among the charges.

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