The Financial Stability Board (FSB) has called for the creation of a global framework aimed at regulating and regulating crypto following the FTX meltdown, and said it will assess vulnerabilities related to distributed finance. power
At a meeting on December 6 in Basel FSB said It plans to “update the digital asset audit framework” to include “defi-specific vulnerabilities indicators,” as well as identify the potential impact of DeFi’s closer linkage to traditional finance. After the liquidity crisis and bankruptcy of FTX
“Crypto trading platforms combine many activities that are normally set apart in traditional finance. This could lead to risks, conflicts of interest, and misuse of client assets,” the FSB said.[FSB] Underscoring the importance of continuous monitoring and the urgency of policy development by the FSB and standards bodies to set a global regulatory and regulatory framework. including in countries that are not members of the FSB.
The FSB had previously proposed a comprehensive framework for crypto with the aim of addressing potential risks while “capturing the potential of the technology,” with public members until Dec. 15 to submit. Opinions according to the group’s recommendation on stablecoins.
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