FSB ready for the quick introduction of global crypto standards

The most powerful financial guards in the world will determine and implement fixed steps to regulate the cryptocurrency industry in early 2023, said the outgoing general secretary of the Financial Stability Board to the Financial Times.

While the European Union and other regional rules have created, global political decision-makers have been criticized to have created a regulatory vacuum that made it possible to exceed companies such as FTX and to achieve a enormous size before their multimillion dollar burning with low supervision.

In the coming months, the FSB intends to determine a schedule for global regulatory authorities in order to implement its first recommendations for global crypto regulation, as well as to show areas in which political decision -makers could benefit from "more clarity" before they have been issued, after problems have been revealed by recent mistakes such as FTX and the cryptocodor Terrafor Labs, whose stable coin terrausd collapsed overnight. The global rules agreed by the FSB are then implemented in law by national politicians and regulatory authorities.

"A goal of this work plan is to counteract the perception that all this (working on the cryptocurrency) is scattered and slow and is not geared towards a single common goal," said Dietrich Domanski of the FT in his Basel office the day before his five -year term. He is replaced by John Schindler, director of the Department of Financial Stability of the US Federal Reserve.

DOMANSKI said that there is "strong agreement" among the members of the Financial Stability Board about the strategy, which "clearly shows what the way into the future (for the crypto) regulation" has started more than five years after the FSB has started evaluating the risks of the sector.

"Many crypto market participants argue that authorities are hostile to innovation. I would say that the authorities have been quite accommodating..

goal is to create a regime in which crypto service providers "are kept at the same standards as banks.. If they provide the same services as the banks," Domanski said, adding that such rules would prevent disasters like FTX and Terraform, since neither of both "the criteria for a solid governance" would have met the rules.

The European crypto rules agreed in July do not come into force until 2024. Global rules usually need a longer lead time. "I don't think we would talk about a decade. I think that would be far too long. I think the work plan will reflect the urgency," Domanski said about the probable time frame for the agreement of final rules and countries that implement it.

The areas for additional work after a flood of crypto collision includes dealing with companies in which "there is a combination of different activities that are traditionally separated", the need to "clarify governance regulations and to ensure" and how to "protect customers". Means to avoid a destabilizing run on a cryptocurrency, Domanski said.

The Basel capital regulations for banks were the most influential global political work of the FSB and forced the banks to raise several ten billion after 2007/08 and to introduce far stricter risk management frames.

This work was directed by a special committee known as Basel's committee for banking supervision. Domanski said that he would not rule out a similar committee to promote crypto regulation at some point, but emphasized that Krypto was a key priority in FSB sessions in addition to climate and non-bank finance regulation.

he defended the FSB's balance sheet and emphasized that, as an expert in 2017, the first time with the investigation of the market began, its development was unclear and there were justified questions about what was to be regulated and whether the approach should burn a stricter regulation or "burning it".

He said it was necessary to better understand the cryptoma markets before setting rules. "All those who say that they should move faster, you should do more, I would like to invite you to follow a global cooperative process.