U.S President Calls For Stringent Regulations Post FTX Crisis

• The FSB has previously advocated for the regulation of cryptocurrencies.
• Biden has spoken out on his thoughts on the cryptocurrency market in Bali.

FTX, a cryptocurrency behemoth crumbled recently. Due to financial embezzlement and other circumstances, the billion-dollar enterprise has disintegrated. Sam Bankman-Fried provided the audience with an extraordinarily rich picture of FTX. 

Following the FTX disaster, worldwide officials were apparently in negotiations to adopt global cryptocurrency laws. The waves of the FTX’s decline also influenced the overall cryptocurrency market in terms of price and investor confidence.

Comprehensive International Framework

To avoid another FTX-like tragedy and safeguard investors and other businesses, President Biden has spoken out on his thoughts on the cryptocurrency market.

Joe Biden and G-20 leaders mentioned in a statement following the meeting in Bali:

“It is critical to build public awareness of risks, to strengthen regulatory outcomes and to support a level playing field while harnessing the benefits of innovation.”

The Financial Stability Board has previously advocated for the regulation of cryptocurrencies along the same lines as more conventional forms of finance. The leaders of the G20 countries have declared that they support the strategy put forward by the Financial Stability Board (FSB) for developing a comprehensive international framework for the regulation of virtual currency operations based on the tenet of “same activity, same risk, same regulation.”

Moreover, they have also claimed that they want to guarantee that the ecosystem around crypto, which includes so-called stablecoins, is subject to severe regulation, supervision, and monitoring in order to limit any possible hazards to investors.

Furthermore, the leaders also agreed to embrace international uniformity in regulatory and supervisory measures for cryptocurrency-related operations and markets.

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