G20 leaders follow FSB’s suggestion for a more all-rounded crypto asset regulatory environment. President Joe Biden is on the frontlines following the FTX crash.
While the FTX scandal continues to unfold, G20 leaders think it a good idea to increase global crypto regulations. During the G20 Summit this year, several countries decided on a better way to control crypto within their borders. The summit rolled out under Indonesia’s presidency in Bali, speaking of the significant global community issues.
The 15-16 November event shed more light on food security, health, energy, and more. Crypto remains a worrying side of the story considering the lack of a general standing ground in many countries. However, the FTX scandal is but the beginning of more regulations. While many always considered more rules as a smother to the bright embers crypto provided, it might be time for such.
President Joe Biden is primarily for the suggestion, as the FTX bankruptcy happened under his financial regulators’ noses. FTX is Bahamian-based but with great crypto standing in the US. The SEC (Securities and Exchange Commission), DOJ (Department of Justice), and the CFTC (Commodity Futures Trading Commission) are working hand-in-hand to unveil what went wrong with the company.
Related: Solana price still crashing amid FTX scandal: What next?
G20 leaders to adopt the FSB proposal
As per a report from the G20 meeting on the White House website, the regulations aim is to improve the thriving crypto sector while protecting users. On that account, the G20 leaders settled on a Financial Stability Board (FSB) proposal in October. Section 35 of the released G20 Summit statement further mentions other international standard setters; crypto assets require close monitoring.
The statement includes stablecoins that play a role in exchanging and storing value as holding various financial risks. As such, the worry lies in cushioning these risks and providing financial stability.
The FSB agrees that the role crypto assets play is similar to that of traditional financial assets. Likewise, it would be fitting to provide the same regulatory environment internationally. While their use cases vary, the evolving nature of the industry could be an unprecedented threat to the global economy in the future.
Curbing crypto-related crime
During the summit, a few more issues arose concerning using crypto for illegal activities. Mainly, money laundering and terrorist funding are still a concern within the lines of crypto misuse. According to a UN representative during the meeting, crypto funds about 20% of terrorist activity.
Related: Crypto scammers exploit black market kyc actors for fraud
The blockchain security firm Chainalysis reported that crypto directed to illegal activities this year is over $10 billion. With such numbers, the next G20 leaders’ summit will have a massive focus on crypto regulation. The forum, expected to be under India’s presidency, a region against crypto for a while, will determine crypto’s regulatory future.
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