The global coordinator of the financial regulation have presented a proposal for the regulation ofcryptocurrencies, we expected that countries enact crypto before the end of the winter.
The Financial Stability Board (FSB), which monitorsand makes recommendations about the global financial system to the Group of 20 Economies (G20),offerednine recommendations to implement these countries.
Currently,the cryptocurrencies continue to be regulated in a great extent in the countries of the world, and the majority of businesses are only required to comply with the standards against money laundering and the financing of terrorism.
However, the shocks have caused the crypto markets to fall from <strong>$3 billion in market cap at its peak</strong> in November last year to currently less than $1 trillion, have led the FSB to believe that it should require companies cryptocurrencies to hold large amounts of capital, in a similar way. to banks or other providers of payment.
“Several crypto-asset lenders failed during the recent market turmoil as a result of vulnerability to runs, thin capitalization, concentrated exposures to risky entities, and risky trading and trading companies,” the FSB said.
FSB recommendations for data andrisks
In addition to this requirement, the FSBsaid that the crypto companies should have a monitoring framework that can manage the riskand the data on these companies, and include contingency plans for a shutdown without problems in case of crisis.
The FSB also updated sti guidance on stablecoins, saying that most of the existing ones do not meet with your standards. According to the facilitator, the regulatory, the collapse of thestablecoin landat the beginning of this year highlighted the need for these assets have a solid guarantee behind them.
consequently,the FSB also proposed that issuers ofstablecoinsstrengthen the governancesurrounding their assets, provide stabilization mechanisms effective for them and clarify how they could be redeemed.
The cryptographic risks arrive “sooner than later”
According to the chairman of the FSB, Klaas Knot, the fall in the prices of the crypto assets during the last year confirmed the perspective of the board that the sector still lacks a structural integrity essential.
While not currently large enough to threaten overall financial stability,Knot said that cryptocurrencies would require that regulatory frameworkto facilitate a proper recovery.
“Therefore, it is likely that concerns about the risks posed to financial stability arise again sooner rather than later,” said Knot in a letter to the finance ministers of the G20.
The proposals are available for public consultation until 15 December. At the end of the next year, it is expected that members of the FSB speedy implementation of these recommendations.
Meanwhile, the European Union it has been making progress with his law of Markets Criptoactivos (MiCA), in addition to revealing the “built-in monitoring” for project finance decentralized (DeFi).
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