The Financial Stability Committee calls for "consistent and comprehensive" global regulation of the cryptocurrency industry.
2023-07-17 07:30
Odaily News – The Financial Stability Board (FSB) on Monday called for stricter rules to protect the assets of cryptocurrency users and avoid conflicts of interest.
The FSB, based on rules initially proposed last October, put forward new recommendations to ensure "consistent and comprehensive" regulation of the industry, with a focus on preventing similar actions that companies like FTX and Celsius are allegedly involved in. The committee is composed of regulatory authorities from approximately 24 jurisdictions, including the United States, European Union, China, and the United Kingdom.
"The events of the past year have highlighted the inherent volatility and structural vulnerabilities of cryptocurrencies and related actors," the document stated, unveiling new regulations that could include requirements for major cryptocurrency conglomerates to separate certain activities and functions.
In outlining the reasons for stricter global rules, the FSB also mentioned recent bank failures that were friendly to cryptocurrencies, the temporary unpegging of Circle's USDC stablecoin two months ago, and the collapse of the TerraUSD stablecoin in May 2022. (CoinDesk)
The FSB, based on rules initially proposed last October, put forward new recommendations to ensure "consistent and comprehensive" regulation of the industry, with a focus on preventing similar actions that companies like FTX and Celsius are allegedly involved in. The committee is composed of regulatory authorities from approximately 24 jurisdictions, including the United States, European Union, China, and the United Kingdom.
"The events of the past year have highlighted the inherent volatility and structural vulnerabilities of cryptocurrencies and related actors," the document stated, unveiling new regulations that could include requirements for major cryptocurrency conglomerates to separate certain activities and functions.
In outlining the reasons for stricter global rules, the FSB also mentioned recent bank failures that were friendly to cryptocurrencies, the temporary unpegging of Circle's USDC stablecoin two months ago, and the collapse of the TerraUSD stablecoin in May 2022. (CoinDesk)
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