In its upcoming regulatory framework, the Financial Stability Board plans to treat cryptocurrency companies similarly to banks.
In 2023, the FSB, the world’s largest financial watchdog, will publish regulatory guidelines for crypto.
In the coming months, the FSB will outline a timeline for global regulators. Their first recommendations on global crypto regulation will be implemented through this agreement, it said.
After a year of high-profile company catastrophes, the move is part of an accelerated push to regulate and restrict crypto activities. Most policymakers, however, fail to understand that crypto is not the culprit, it is the people running these centralized lending companies.
Bank-like regulation of crypto
A clear path forward for the crypto industry is what the FSB is seeking, according to Dietrich Domanski, the FSB’s Secretary General.
However, he also stated that the goal would be to regulate crypto service providers in the same way that banks are regulated “if they provide the same service that banks provide.”
According to Domanski, such rules would have prevented the Terra and FTX disasters because neither would have met “the criteria for sound governance.”
In other words, the FSB appears to want to prohibit all crypto companies that do not meet the criteria for a banking license, which appears to be nearly all of them.
Following the 2008 financial crisis (caused by banks), the FSB implemented a global policy requiring banks to raise billions of dollars and implement tighter risk management frameworks.
The End of Financial Independence
With their growing demands from clients for personal and financial data, banks have destroyed financial freedom over time.
A small number of terrorists and money launderers have made life difficult for the remaining 99% of the population. Regular banking is extremely restrictive, requiring additional paperwork and KYC to open accounts, as well as high fees, slow transactions, money movement limits, and proof of funding or source of capital.
Banks punish their customers, assuming they are guilty until they prove their innocence. This is why crypto was created, but it appears that the powers that be simply want to turn it into traditional finance, with all of the problems that entail.