Tue. Apr 16th, 2024

At the end of the last meeting of the countries that are part of the G20, the leaders of the group described as “criticism” the need for international rules to regulate bitcoins Y other cryptocurrenciesstating that the potential risks for the “financial stability” they must be urgently mitigated. The ad follows the FTX collapse, which caused a domino effect and, in addition to harming investors and companies, gave reasons for global regulators to close the siege on the sector. The Group has the participation of Presidents, Finance Ministers and Central Bank Presidents from 19 countries, including Germany, Brazil, China, the United States and others. The G20 Leaders’ Declaration was issued after the conclusion of the two-day summit in Bali attended by top world leaders.

We welcome the continued work of the FSB and international standard setters to ensure that the ‘crypto-asset’ ecosystem, including so-called stablecoins, is closely monitored and subject to robust regulation and supervision to mitigate potential risks to stability. financialsays the statement issued by the White House and other countries that are part of the G20.

FBS is a global financial standards setter that has proposed rules that would subject cryptocurrency businesses and markets to the same strict rules that govern traditional finance. The G20 statement added:

“We welcome the approach proposed by the FSB to establish a comprehensive international framework for the regulation of crypto-asset activities based on the principle of ‘same business, same risk, same regulation.’”

stablecoins

Together, the 19 countries represent more than 80% of world GDP, 75% of international trade and two-thirds of the world’s population. They said they will remain agile and flexible in macroeconomic policy responses and cooperation, committing to protect macroeconomic and financial stability, and remain committed to using all possible tools to mitigate downside risks. Going forward, they claim that global stablecoins will have “top-notch” regulation and supervision.

We welcome the FSB’s advisory report on the review of its high-level recommendations for the regulation, supervision, and enforcement of ‘global stablecoin’ arrangements..

FTX collapse

Since the FTX exchange collapse is in the crosshairs of regulators, the G20 leaders reinforced the need for coordinated cooperation to regulate cryptocurrencies around the world. The leaders agreed to welcome international consistency in regulatory and supervisory approaches to activities and markets related to digital assets.

We also welcome the FSB Consultation Report on Promoting International Consistency of Supervisory and Regulatory Approaches to Cryptocurrency Markets and Activities. It is critical to increase public awareness of risks, strengthen regulatory outcomes, and support a level playing field, while reaping the benefits of innovation..

FTX Ripple Effect

The statement comes as cryptocurrency exchanges implode under their own weight and scare off investors. Therefore, the G20 pushes for consistency in its regulation across all jurisdictions. At the same time the statement was released, White House press secretary Karine Jean-Pierre, said:

“Without proper supervision, cryptocurrencies risk harming ordinary Americans, so this is something we see as a major problem, but the latest issues stand out and show why prudent supervision of cryptocurrencies is really necessary.” .

Thus, President Joe Biden’s administration called for tighter regulatory controls on Bitcoin, stablecoins, and other cryptocurrencies in response to the FTX exchange scandal, headed by Sam Bankman-Fried. The move comes as no surprise, as top industry leaders such as Binance CEO Changpeng Zhao (CZ) predicted that the fall of the third-largest exchange in the market would attract the attention of regulators.

“Regulators will further scrutinize the exchanges. Global licenses will be more difficult to obtain. People now think we are the [corretaje] bigger and it will attack us more.” – said the CEO of Binance.

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By Farwa Raza

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