Crypto market
Crypto market

Crypto Market Could Soon Threaten Global Financial Stability

Klaas Knot is the Financial Stability Board, an institution that can set the rules in the cryptocurrency industry.

Klaas Knot expressed his concerns that the cryptocurrency industry could harm the money network in the future. Cryptocurrency is developing quite fast, but illegal activities are also increasing. “It is the duty of the FSB to prevent these crimes,” he said.

The FSB aims to Regulate “Unsupported” Crypto.

The lack of a regulatory environment is a very serious problem.

The economist argued that bitcoin and altcoins can operate under the radar of watchdogs, and therefore, those who do wrong can facilitate illegal transactions with them. Russia also touched on the Ukraine war.

He stated that the war has played a role in crypto money laundering, ransomware and cybercrime.

The central bank noted the rapid development of the asset class in recent years. However, he noted that this progress could pose a threat to the global monetary ecosystem.

The bottom line of our assessment is that crypto assets are evolving rapidly and could soon threaten global financial stability. The rapid development and international nature of these markets also increases the potential for regulatory gaps, fragmentation or arbitrage.

Klaas stated that one of the primary goals of the FSB will be to establish comprehensive rules in the market, particularly regarding “unsupported” cryptocurrencies and stablecoins. In addition, the agency will aim to bring a regulatory framework to the DeFi industry by collaborating with government agencies such as the Financial Action Task Force.

Dutch said :

Thanks to its broad international and cross-industry membership, including the industry standard setter, the FSB is well positioned to take a leading role in the design of a coherent framework for crypto-assets

Politicians in Favor of Regulations

Lawmakers and government officials and many more want crypto rules to be enforced.

Shortly after the start of the Russia-Ukraine war, European Central Bank President Christine Lagarde urged the EU to strengthen its crypto regulations. Otherwise, Russia can avoid sanctions with its asset class.

bitcoin

It is worth noting that cryptocurrencies are not suitable for such endeavors due to the underlying blockchain technology.

Binance CEO Changpeng Zhao:

If you look at the data, no smart person would do that. Crypto is so traceable, governments around the world are getting better and better at tracking crypto transactions. So crypto is not good for that.

French President Emmanuel Macron stated last month that France should dive deeper into the Web3 ecosystem and Metaverse. However, he supported the European Parliament’s approach to set rules on the digital asset sector by enforcing MiCA legislation (Markets in Crypto Assets).

Macron:

We must now ensure uniformity of rules on European soil in order to create a unified market. “Given this context, I am in favor of rapid progress in MiCA regulation.

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About Hama Amefiz

Amefiz is a professional blockchain, cryptocurrency and tech journalist, regular contributor to newsbsc.com who is writing analysis about the latest developments in the cryptocurrency and blockchain space.

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