crypto strategy

FSB official says unregulated crypto is a threat

The current turmoil in the cryptocurrency world has given the Financial Stability Board (FSB) new reason to develop regulations for the industry.

That’s according to Steven Maijoor, head of the FSB’s task force on crypto assets and the industry’s latest orbiting person to call for more regulation.

He made his remarks Thursday, November 17 at the Institutional Digital Assets and Crypto Regulation Symposium hosted by City & Financial Global in London, Coindesk reported.

Based in Switzerland, the FSB works with national financial authorities and international standard setters “as they work to develop sound regulatory, supervisory and other financial sector policies”, according to the website. organisation.

According to Maijoor, the rapid growth of the crypto market, coupled with structural vulnerabilities and a lack of regulation means that they will “soon reach a point where they pose a threat to the stability of the global financial system.”

Also on Thursday, Acting Comptroller of the Currency Michael J. Hsu said consumers should take the same cautious approach to cryptocurrencies that the banks have taken.

He said his agency’s “cautious and careful” strategy for banks’ crypto businesses has mitigated the risk of contagion from this year’s events in the crypto world.

“Years of reform and reconstruction after the 2008 financial crisis have strengthened the banking system, making it more resilient, fairer and more reliable,” Hsu told a public meeting of the Financial Literacy and Education Commission (FLEC ) of the US Treasury Department. “While continuous improvements need to be made, this has proven valuable with the rapid rise and fall of crypto over the past year.”

Hsu and Maijoor are among many people preaching the gospel of regulated crypto in the wake of the FTX implosion. As PYMNTS reported on Thursday, this extends to proponents of digital tokens in Brazil, who are calling on lawmakers there to approve crypto regulations.

The Brazilian Cryptocurrency Industry wants the country to approve legislation providing oversight to its industry, amid a wave of calls for more regulation following the collapse of FTX.

Roberto Dagnoni, executive of Bitcoin markettold Reuters the law was “sort of dormant” during the country’s recent elections, but has gained new urgency.

If there’s an upside to the FTX situation, he said it could make the law a priority.

“The rules that currently exist are not applicable to certain players, so they can do whatever you want… This (law) would change a lot,” Dagnoni said.

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https://www.pymnts.com/cryptocurrency/2022/crypto-exchanges-promise-to-publish-proof-of-reserves/partial/

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