The implosion of FTX has woken up the Financial Stability Board (FSB), the world’s financial watchdog. According to the FSB, the stock market collapse highlights the urgent need for clear global regulation. The Financial Times reports that the watchdog will come up with a plan to regulate crypto next year.
It’s time for action
According to Dietrich Domanski, the outgoing secretary general of the FSB, recent events show that there is an urgent need for strict rules. “Many market participants say that the authorities are against innovation. I would say that the authorities have been quite cooperative with the innovation so far,” said Domanski. The Secretary-General also indicates that crypto projects must from now on meet the same standards as banks if they offer comparable services.
The real crypto purists probably don’t want this, but ultimately this is the only way to create a safe situation for the general public. For a long time everyone thought that FTX was a safe place for their savings and that turned out not to be the case. Let alone all the other shadowy parties where you can still go with your crypto at the moment. It would be good if that scam came to an end, at least as much as possible.
Avoid FTX and Terra
If it is up to Domanski, new crypto legislation will prevent parties such as FTX and Terra from becoming so big in the first place. In the coming months, the FSB wants to set a timeline for global lawmakers to implement their new rules. So it doesn’t seem to be long before we get a global regulatory framework for crypto.
In any case, Sam Bankman-Fried is now on his way to the United States for his extradition. There, he probably awaits a long prison sentence. Let us also hope that there will be clear rules soon, so that the general public also enjoys a little more protection. That or everyone has to learn to manage their own Bitcoin, but that also proves to be a difficult task.