One of the international monitoring institutions of the financial sector Financial Stability Board (FSB)has called for a global collaboration for the regulation and oversight of cryptocurrencies following the bankruptcy of the FTX exchange.
The FSB scrutinized the crypto industry at a meeting in Basel, Switzerland, on December 6. Stabilization Board, especially DeFi brought the security vulnerabilities in the sector to its agenda. International experts are investigating how the growth in decentralized finance will affect the traditional wing.
The financial authority also touched on the bankruptcy of the giant cryptocurrency exchange FTX. of FTX market risk of bankruptcy “annoyed” However, strengthening the crypto industry’s links to traditional finance will increase risks in the future.
“Cryptocurrency exchanges that collect the services normally provided by different institutions on a single platform in traditional finance; Concentration of risk can lead to conflicts of interest and misappropriation of client assets.”
After these sentences, the authorities emphasized the need for a global cryptocurrency regulation as a solution.
“We urgently need to regulate the crypto industry worldwide in a way that includes non-FSB countries.”
The Financial Stability Board was established at a G20 summit in 2009. The organization includes important names from state institutions such as central banks, financial regulators and finance ministries of member countries.
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