In the wake of a tumultuous year for the cryptocurrency industry, international regulators are advocating for stricter rules to protect investors and maintain market integrity. On July 17, The Financial Stability Board (FSB), an international body that monitors and makes suggestions about the global financial system, issued a report containing a set of recommendations aimed at ensuring comprehensive and consistent regulation of the cryptocurrency sector.<\/p>\n
The FSB Global Regulatory Framework for Crypto-asset Activities explicitly referenced the collapse of FTX and the calamitous downfall of the TerraUSD stablecoin as events that\u00a0\u201cdemonstrate interlinkages between crypto-asset markets and the traditional financial system,\u201d saying such catastrophes underscore the comprehensive development of rules regarding crypto-asset activities.\u00a0<\/p>\n
Safeguarding assets, minimizing damage<\/h2>\n
The FSB, which comprises regulators from dozens of jurisdictions globally, including the United States, the European Union, the United Kingdom, and China, emphasized the need for safeguarding clients\u2019 assets and avoiding conflicts of interest in the report.<\/p>\n