G20 regulator urged to tighten cryptocurrency regulation

G20 regulator urged to tighten cryptocurrency regulation
The Financial Stability Board has called for tighter cryptocurrency regulation to protect cryptocurrency clients
The Financial Stability Board has published a set of rules to protect cryptocurrency clients' assets and avoid conflicts of interest

The Financial Stability Board (FSB) has called for stricter rules to protect cryptocurrency clients' assets and avoid conflicts of interest after many companies have found themselves involved in litigation in recent years.

The board's recommendations are based on proposals proposed back in October 2022, they aim to prevent actions that have been taken by companies such as FTX and Celsius.

In 2009, the G20 summit decided to rename it the Financial Stability Board, while expanding its membership and powers.

Today, the FSB includes more than 20 states and jurisdictions, including G20 countries, as well as major financial institutions such as the IMF and the World Bank.

"The events of 2022 have demonstrated the inherent volatility and structural vulnerability of crypto assets and related players," the paper said.

"Crypto market players should therefore stop operating outside regulatory boundaries or in violation of existing rules," Reuters quoted FSB Secretary General John Schindler as saying.

He also added that market participants will no longer be able to claim a lack of regulatory transparency, as the restrictions imposed by the FSB introduce clear standards that must be applied.

Earlier, the Council of Europe announced the adoption of Markets in Crypto-Assets (MiCA) digital asset regulation rules. 27 member countries of the European Union unanimously supported the bill. The document introduces institutional regulation of cryptocurrency issuance and establishes a uniform legal regime for cryptocurrency companies in the European Union.

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