G20 Regulators Propose Global Rules for Crypto

The Financial Stability Board said the collapse of major crypto companies could negatively impact broader financial markets.

Never-Ending Legal Battle

The Financial Stability Board (FSB) has called for a new global set of rules for cryptocurrencies. The agency will submit its report to G20 Finance Ministers and Central Bank Governors in October, at the request of G7 countries.

The FSB stepped in due to the liquidity crisis spreading throughout the market, partly due to the collapse of $LUNA-$UST. The incident was so significant that other stablecoins such as $TRX-$USDD, $NEAR-$USN, $USDT, etc., have all been impacted, drawing scrutiny from not only the crypto community but also regulators across the world.

Terraform Labs and its CEO Do Kwon are being sued in the U.S. over the $LUNA-$UST catastrophe. Terraform is under investigation in Korea for alleged embezzlement, and a U.S. court rejected its appeal to the SEC

The FSB pointed out that situations like Terraform demonstrate that stablecoins are extremely risky, saying that the collapse of major crypto companies could have a knock-on effect on the traditional financial industry, and concluding that countries need a global set of rules for cryptocurrencies.

The FSB is an international body based in Switzerland that coordinates and promotes global financial stability. FSB members include officials from nearly 70 countries, including the U.S., Russia and China.

Source : bsc.news

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