FSB to set crypto regulatory norms globally

Dietrich Domanski is stepping down as the Financial Stability Board (FSB) secretary general. Recent events have demonstrated that it is necessary to manage the risks within the industry, according to Domanski.

A global financial institution took action after the collapse of the FTX exchange. This led to ideas about controlling the cryptocurrency market in the early 2023.

According to some reports, the Financial Stability Board (FSB), an organization responsible for overseeing the global financial system has stated that it will be preparing plans to regulate. cryptocurrencies Over the course of next year.

Domanski stated that the goal of cryptocurrency regulation is to make sure that cryptocurrency projects adhere to the same standards as banks. If the services provided by the projects are comparable to the ones offered by banks, Domanski said so. This was Domanski’s previous statement.

Recent failures of key cryptocurrency ventures like Terraform Labs or the FTX exchange have caused widespread criticism of the decision of policymakers around the world to allow the FTX market flourish before it erupts. According to an official from the FSB these rules and regulations would not have met the “conditions of effective administration” and would have prevented situations such as the collapses of Terra and FTX.

The Financial Stability Board (FSB), wants to establish a timeline to allow global authorities to adopt the first ideas over the next few months. After the presentation of the recommendations, the Financial Stability Board will reach a consensus on a series of guidelines. These guidelines can then be codified in law by different national and regulatory agencies.

Sam Bankman Fried, the former chief executive officer at FTX was taken into custody by Royal Bahamas police. He will be sent to the United States. The United States sent Bankman-Fried an official notice that it had brought criminal charges against him. He was then taken into custody by law enforcement.

Several hours before he was taken into custody, Bankman-Fried disputed the claim that he participated in a Wirefraud discussion forum that was reportedly comprised of FTX employees.

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