The loss of $2 trillion of crypto market cap over a period of months has “underscored the need for enhanced regulation,” the Financial Policy Committee said.
The world’s third-biggest economy wants the Markets in Crypto Assets Regulation to protect investors and set up strict standards for stablecoin issuers.
The European Systemic Risk Board is looking into measures and policies to address the potential threat that crypto assets could present to the global financial system.
Holdings of unbacked crypto like bitcoin and algorithmic stablecoins would be limited to 1% of a lender’s capital under the standard setter's new plans put out for consultation Thursday.
After the potentially privacy-busting "travel rule" for crypto transfers, global standard setters at the Financial Action Task Force have their eyes on DeFi, NFTs and unhosted wallets.