Share this article
BTC
$78,375.97
-
6.29%ETH
$1,582.11
-
12.53%USDT
$0.9993
-
0.04%XRP
$1.9298
-
10.52%BNB
$555.27
-
6.49%USDC
$1.0002
+
0.00%SOL
$106.35
-
11.83%DOGE
$0.1495
-
11.82%TRX
$0.2294
-
3.45%ADA
$0.5750
-
12.42%LEO
$8.8812
-
2.66%LINK
$11.29
-
12.37%TON
$2.9275
-
9.90%XLM
$0.2263
-
10.52%SHIB
$0.0₄1132
-
8.56%AVAX
$16.05
-
10.49%SUI
$1.9320
-
13.09%HBAR
$0.1399
-
13.93%OM
$5.7690
-
7.88%BCH
$272.46
-
10.50%Sign Up
- Back to menuPrices
- Back to menuResearch
- Back to menu
- Back to menu
- Back to menu
- Back to menuResearch
Financial Stability Watchdogs Vow to Tackle DeFi, Learn FTX Lessons
Policymakers from the world’s major jurisdictions want an international rulebook for crypto.
Financial policy makers from across the globe vowed Tuesday to take a closer look at the risks of decentralized finance (DeFi) as they rake over the coals of collapsed Bahamas-based crypto exchange FTX.
Members of the Financial Stability Board underlined the urgency of having a global framework for regulating and supervising crypto, as set out in an October consultation. They said the FSB would look closer at “DeFi-specific vulnerability indicators,” examining the interlinkages of a sector that is fast-growing and can replicate traditional activities like lending, but which is hard to regulate using traditional tools.
STORY CONTINUES BELOW
“Crypto trading platforms, combining multiple activities that are normally separated in traditional finance, can lead to concentrations of risk, conflicts of interest, and a misuse of client assets,” the FSB said, noting it had drawn “preliminary lessons from the recent failure of FTX.”
The Financial Stability Board includes central bankers, financial regulators and finance ministry officials from 24 jurisdictions including the U.S., U.K. and European Union, and its standards have been influential for regulating the traditional finance sector since 2008.
Read more: ‘Comprehensive’ International Crypto Rules Proposed by Influential Finance Watchdog
Jack Schickler
Jack Schickler was a CoinDesk reporter focused on crypto regulations, based in Brussels, Belgium. He previously wrote about financial regulation for news site MLex, before which he was a speechwriter and policy analyst at the European Commission and the U.K. Treasury. He doesn’t own any crypto.
