FSB DECLARES POSSIBLE GLOBAL CRYPTO REGULATIONS IN OCTOBER 2022
It is no more news that the reports of BTC and other Cryptocurrencies dropping at an alarming rate are no longer news to fake a smile about. The concerns are rising and recently the FSB (Financial stability board) seems more concerned about the current nature of the Cryptocurrency market since it has a very close relationship with the traditional financial market.
The Financial Stability Board (FSB) protects and guides financial stability, as an international body, its jurisdiction is cast on the global financial system.
The FSB in its mandate to regulate and supervise as well as create policies for the financial sector has deemed it fit to throw an eye on crypto. This is also in conjunction with the Group of Twenty countries (G20) as they set to embark on the proposition to enact international regulations for crypto and Stablecoins in the coming months. October to be precise.
The boards issued a statement on Monday calling for an international regulation for stablecoins and crypto. This statement also had a need for crypto asset activities to be monitored/supervised.
The international regulatory body plans to take the move further, filling reports to the Group Of Twenty (G20) finance minister and the various central bank governors on Crypto and stablecoins regarding regulation and supervision.
October seems to be perfect, as this would give the FSB ample time to review recommendations and structure a workable framework from the already existing framework to bridge gaps.
Public consultation reports aimed at facilitating global consistency of regulatory measures would also be submitted by the G20 authority.
The FSB noted that its growing interest in cryptocurrency regulation was a result of the current state of the crypto market. As these increased swing lows have increased the dependency and interconnectedness of the crypto Market on the traditional financial system.
The Financial stability board also suggested that this may have an effect on crucial aspects of traditional finance
As much as this seems feasible enough to the G20 authority and FSB, Narek Gevorgyan, the CEO of CoinStats, questioned the FSB’s ability to embrace every regulatory approach and the number of existing protocols. In his statement, he made an inquiry into the possibility of integrating the numerous and newly emerging protocols that are already resistant to regulation.
It is equally worthy of note, that the FSB earlier in the year outlined some concerns stemming from crypto, and its adoption. It was skeptical about most stablecoins, data gaps, and the risk posed by DeFi.