It’s Necessary to Introduce General Regulating Rules For the Crypto Market — FSB

The chairman of the organization and the head of the Central Bank of the Netherlands, Klaas Knot, said that the Financial Stability Board (FSB) will develop new rules for the cryptocurrency industry.

From a consumer and investor protection perspective, he said, the loss of confidence in digital assets could have system-wide repercussions due to the impact on broader financial markets and the wealth of asset holders.

Knot noted that Russia’s war against Ukraine has reinforced pre-existing concerns about the illegal use of digital assets for money laundering and cybercrime.

As part of the crypto ecosystem is still unregulated, this makes it difficult to monitor and oversee the sector. Because of this, according to Knot, working on a policy on crypto assets is a priority for the FSB.

Knot added that one of the main goals is to establish comprehensive rules in the market, especially in relation to “unbacked” cryptocurrencies and stablecoins. The FSB will also create a regulatory framework for the DeFi sector in collaboration with the FATF.

Earlier European Central Bank Board Member Fabio Panetta said that as cryptocurrencies are rapidly spreading around the world, a coordinated effort is needed to regulate them.

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