Crypto Money Letter from FSB, of which Turkey is a member!

of the year 2022 cryptocurrencies It was said that it would be the year of regulation for the But the harsh crypto winter has given governments more time to regulate this space.

Although investors are not yet fully feeling the pressure of the regulations, we see that there is a feverish work in the background.

While some collapses in the crypto winter reinforce the negative thoughts of the authorities towards the sector, they also affect the direction of the regulation studies.

Crypto Winter Highlights Risks

A new statement regarding crypto money regulations came from the Financial Stability Board (FSB).

In his letter to the finance ministers of the world’s 20 largest economies, Klaas Knot, the head of the FSB and also the head of the Dutch Central Bank, stated that the crypto winter we are in has contributed to the emergence of the structural problems of the sector and that previous assessments have become even stronger.

In previous reviews, the FSB highlighted liquidity mismatches, high leverage and inappropriate business models within the crypto industry.

Emphasis on Regulation Repeated

Pointing out that the great decline in Bitcoin and Ethereum has revealed the need for regulation, Knot once again emphasized the need for comprehensive regulation.

“This turmoil has once again highlighted the need for a comprehensive approach to crypto-asset regulation.”

The report, which was sent to the Finance Ministers of the largest economies today, called for the expansion of existing financial norms to include crypto assets and the development of these regulations for crypto risks.

The report noted that many crypto companies are already violating existing financial norms, and that necessary action should be taken regarding them.

Stablecoins should also be considered in the report, and it was said that current stablecoins do not meet the requirements of the FSB.

The FSB is supported by Central Banks and Ministers of Finance and carries out activities to coordinate the work of national financial authorities and international standard-setting institutions and to develop and implement effective regulation, oversight and other financial sector policies to ensure financial stability. He is a member of this board in Turkey. The FSB’s reports are not binding. These reports are advisory in nature.