The Financial Stability Board will set global standards for crypto

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Crypto regulations have been deliberate in and out of the industry. However, recent events have raised concerns about the lack of regulation of digital assets.

The United States Securities and Exchange Commission, Congress, and some global authorities have tried to up their game to put in place a clear regulatory path for crypto. It is supposed to downplay events like the FTX crisis and keep bad players out of the industry.

The Financial Stability Board (FSB), an international authority that oversees the global financial system, has sprung into action regarding crypto regulation. According to reports, the council plans to develop a crypto regulatory framework in 2023.

According to Dietrich Domanski, outgoing Secretary General of the FSB, recent events have underscored the urgency of addressing risks within the crypto space.

Proper guidelines could have prevented the disaster

Domanski explained that several crypto market players have accused authorities of being hostile to innovation. But for Domanski, they have adapted to crypto innovations.

The crypto market is currently trading sideways l | Source: Total Crypto Market Cap at TradingView.com

He noted that the regulatory recommendations aim to bring crypto projects up to par with banks. Domanski thinks crypto projects should operate to those same standards because they provide similar services.

Citing the recent crash of Terraform Labs and the FTX exchange, makers were criticized. Critics blamed authorities for allowing FTX to grow before it collapsed. But, according to Domanski, a solid set of guidelines could have prevented such events from happening.

The FBS intends to set a timeline for global regulators to implement its recommendations in 2023. After proposing the regulatory recommendations, the rules will be subject to review and approval by the FSB. Various national authorities and regulators can then transpose the rules into law.

FTX Collapse and Investigations Update

In recent updates on the FTX fiasco, former CEO Sam Bankman-Fried (SBF) was arrested by the Royal Bahamas Police Force. He awaits extradition to the United States. SBF’s arrest comes after the US government informed Bahamian police that it had filed criminal charges against him.

Criminal charges against SBF include wire and securities fraud, money laundering and conspiracy to commit wire and security fraud.

Shortly before being arrested, Bankman-Fried denied being part of a wire fraud chat group. The chat group, which would include FTX executives, was a platform for exchanging information about the operations of FTX and Alameda Research.

Meanwhile, FTX Director of Restructuring and new CEO John Ray wrote testimony ahead of his appearance at the House committee hearing.

In the written testimony, he said FTX client assets were mixed with Alameda Research funds.

Investigations into the FTX collapse are ongoing.

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