FTX, a cryptocurrency giant collapsed to the ground. Due to financial misappropriation and other factors, the billion-dollar empire has crumbled. Sam Bankman-Fried presented the public with an extremely robust representation of FTX. The truth, on the other hand, was far from what the outside world witnessed.
Following the FTX debacle, global regulators were reportedly in talks to implement global cryptocurrency regulations. The ripples of the FTX’s fall also affected the whole cryptocurrency market in terms of pricing and investor confidence.
To prevent another FTX-like incident and safeguard investors and other entities, President Biden has spoken out on his views on the cryptocurrency sector.
Joe Biden conveyed his opinion following the meeting in Bali
“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,” Joe Biden and G-20 leaders mentioned in a statement following the meeting in Bali.
The Financial Stability Board had earlier suggested levying strict rules for cryptocurrencies similar to traditional finance. The G-20 leaders welcomed the proposal to implement a comprehensive international framework for cryptocurrency activity regulations.
The statement further noted, “…to ensure that the crypto-assets ecosystem, including so-called [traditional currency-pegged] stablecoins, is closely monitored and subject to robust regulation, supervision, and oversight to mitigate potential risks to financial stability.”
The leaders also agreed to welcome international consistency in regulatory and supervisory approaches to cryptocurrency-related activities and markets.