- Joe Biden Leads ‘Critical’ Call For Game-Changing crypto rules.
- In October, the Financial Stability Board also recommended restrictions.
- Crypto enthusiasts have brought out their views on the current situation.
US President Joe Biden has pushed government organizations to collaborate on cryptocurrency development. Equally important, regulation is necessary, but it is even more urgent following the failure of the cryptocurrency exchange FTX.
“It is critical to raise public awareness of risk, strengthen regulatory outcomes and support a level playing field while reaping the benefits of innovation,” G20 leaders, including U.S. President Joe Biden, wrote in a statement sent to the White House website after the meeting this week in Bali, Indonesia.
The Financial Stability Board (FSB), an organization that sets global financial standards, also recommended restrictions in October. These measures would subject cryptocurrency businesses and marketplaces to the same stringent restrictions that govern conventional finance.
We welcome the approach proposed by the FSB to create a comprehensive international framework for the regulation of crypto-asset activities based on the principle of ‘equal activity, equal risk, equal regulation.
the G20 leaders
“This is more of a wake-up call than just a bump or even the end of the road,” said Cristiano Bellavitis, a professor at Syracuse University specializing in cryptocurrency and blockchain technology, in emailed comments. “The sector is huge financially but has very limited regulation. The same problems would not have arisen in the mainstream financial system.”
However, Bellavitis believes that the bitcoin and cryptocurrency sectors will ultimately bounce back from the FTX collapse. He also believes that further regulation will support the growth of this technology.
“[The collapse of FTX] will reduce confidence in the crypto industry, but this industry and blockchain technology will remain,” Bellavitis said. “More regulation and clearer rules will only bolster what this industry can do.”
