Following the FTX disaster, global officials were reportedly negotiating global cryptocurrency laws. In terms of price and investor confidence, the waves of the FTX’s decline influenced the overall cryptocurrency market.
President Biden has spoken out on his thoughts on the crypto market in order to avoid another FTX-style disaster and to protect investors and other businesses.
Following the Bali meeting, Joe Biden and other G-20 leaders issued the following statement:
“It is critical to build public awareness of risks, to strengthen regulatory outcomes and to support a level playing field while harnessing the benefits of innovation.”
The Financial Stability Board has previously advocated for cryptocurrency regulation along the same lines as more traditional forms of finance.
The G20 leaders have stated their support for the Financial Stability Board’s (FSB) strategy of developing a comprehensive international framework for the regulation of virtual currency operations based on the tenet of “same activity, same risk, same regulation.”
Furthermore, they have stated that they want to ensure that the crypto ecosystem, which includes so-called stablecoins, is subject to strict regulation, supervision, and monitoring in order to limit any potential risks to investors.
Additionally, the leaders agreed to embrace international consistency in regulatory and supervisory measures for cryptocurrency-related operations and markets.