The world’s most prominent global financial watchdog group is preparing to impose stringent proposals for regulating the crypto industry in early 2023, along with a timeframe for implementation.
FSB to hold crypto firms to banking standards
According to reports, the Financial Stability Board (FSB), an international group that monitors the global financial system, will outline steps to regulate cryptocurrencies in 2019. Recent events, according to Dietrich Domanski, the FSB’s outgoing secretary-general, have made it “urgent to address risks” in the sector. He elaborated:
“Many crypto market participants argue that authorities are hostile to innovation. I would say so far, authorities have been fairly accommodating.”
Domanski added that the primary goal of the proposed crypto regulation is to ensure that crypto projects are held to the same standards as banks if they offer comparable services. The FSB official claims that such rules and regulations would have prevented the meltdown of Terra and FTX because they would not have satisfied the “criteria for sound governance.”
The FSB intends to develop a schedule for global regulators to implement the initial recommendations in the following months. After the provision of recommendations, the rules that have been agreed upon at the FSB can be enacted into law by various national and regulatory agencies.
Domanski stated that cryptocurrency regulation was one of the FSB’s top priorities, along with climate regulation and non-bank regulation.
The executive also defended his organization against allegations that it had moved slowly in the past, stating that he would invite the accuser to follow a global cooperative process and then inform him that the FSB could have moved faster.
FSB rules and the international community
Many regions are now clarifying their rules concerning crypto assets, which is driving the push toward a solidified global set of regulations.
The European Union (EU) has recently implemented new regulations surrounding the taxation of crypto assets as part of a significantly broader set of tax regulations, which will require all businesses, regardless of size, that process crypto transactions to report these for tax purposes.
The UK government recently extended tax breaks for investment managers investing in cryptocurrency, in addition to over thirty other reforms.
Source: https://crypto.news/financial-stability-board-fsb-to-finalize-global-crypto-regulations-in-early-2023/