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In view of the recent publishing by the Financial Stability Board (FSB) of the report on the proposed framework for international regulation of the cryptocurrency industry, which was a result of FSB’s research of the topic as was mandated by the G20, some market players also have expressed their thoughts on this hot topic.
The FSB’s proposes that “effective regulatory and supervisory frameworks should be based on the principle of ‘same activity, same risk, same regulation’”. This approach would mean that regulations applicable to traditional financial institutions shall be also applicable to companies that operate in the cryptocurrency industry and provide similar services with equivalent economic functions. However, certain special features relating to the operation of the cryptocurrency industry must certainly be addressed as well.
On 19 October 2022, the Chief Executive Officer of one of the largest cryptocurrency exchanges, FTX, Sam Bankman-Fried (SBF), published his view on possible regulation of the cryptocurrency industry, together with some suggestions on how to make it effective.
The proposal by SBF focused on seven fundamental aspects of the industry:
Below is a summary of each of the proposed cryptocurrency industry regulation categories.
SBF already had experience in publicly discussing cryptocurrency regulation. In December 2021 he was summoned, together with other executives representing digital currency companies (CEOs of Circle, Bitfury Group, Paxos Trust Company, Stellar Foundation, and Coinbase Global Inc. have been participating in the hearing) to the U.S. Congress to testify before the House Financial Services Committee for the hearing on “Digital Assets and the Future of Finance: Understanding the challenges and benefits of financial innovation in the USA”.
There are no guarantees that the suggested regulatory ideas will be implemented in practice, however, some of the points from them might as well make to the cryptocurrency industry regulation not only in the U.S., but also in other countries and jurisdictions.
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This post is from a series of posts in the group:
Over 18,000 businesses already accept Bitcoin payments, enjoying savings up to 80 per cent in transaction costs, higher profit margins, and access to an audience of 300-plus million crypto holders. Read our guide and find out how to accept crypto in a few easy steps with the world's fastest-growing gateway
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