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According to reports, a worldwide regulatory framework for cryptocurrencies would be implemented by the Financial Stability Board (FSB), the largest financial services regulator in the world, in the first quarter of 2023.
In the next months, the FSB will set a timeframe for the adoption of global crypto regulations, which local governments would subsequently enact, claims a recent Financial Times story.
According to the article, the goal is to hold cryptocurrency service providers to the same standards as banks, provided they provide the same service that banks do. Dietrich Domanski, the FSB’s departing secretary general, stated this in the report.
The FSB is examining regulations for cryptocurrency-related businesses that provide a mix of financial services that are typically kept apart, including the control of financial transactions as well as transparency and the safety of client assets.
Dietrich Domanski further noted:
“Many crypto market participants argue that authorities are hostile to innovation. I would say so far, authorities have been fairly accommodating… recent events have reinforced the recognition that it is indeed urgent to address risks.”
The fall of the FTX crypto exchange in November and the failure of Terraform Labs’ Terra USD stablecoin in May is considered to have prompted the FSB’s desire to regulate crypto.