According to Dietrich Domanski, who is stepping down as secretary general of the Financial Stability Board (FSB), recent events have shown that there is a “need to manage risks” within the industry.

The collapse of the FTX exchange sparked action by a global financial body, which in turn sparked ideas in early 2023 on how to control the cryptocurrency market.

It has been said that the Financial Stability Board (FSB), an international organization that is in charge of monitoring the global financial system, has declared that it would be designing plans to regulate CRYPTOCURRENCIES over the course of the next year.

Domanski also stated that one of the goals of developing crypto regulation suggestions would be to hold crypto projects “to the same standards as banks” if the projects provide services that are comparable to those provided by banks. This statement was made in reference to Domanski’s earlier statement.

The recent failures of major cryptocurrency firms like Terraform Labs and the FTX exchange have drawn widespread criticism of the decision by lawmakers around the world to allow the FTX market to flourish before it crashes. These rules and regulations, according to the FSB official, would not have met the “conditions for effective management”, thus avoiding scenarios such as the collapse of Terra and FTX.

The Financial Stability Board (FSB) wants to create a timetable for global policymakers to adopt the first ideas in the coming months. Following the presentation of recommendations, the Financial Stability Board (FSB) reaches a consensus on a set of guidelines. These guidelines can then be codified into law by a number of different national and regulatory authorities.

Former FTX CEO Sam Bankman-Fried was detained by Royal Bahamian police not long ago and is scheduled to be deported to the United States. After the US government sent Bankman-Fried with official notice that it had filed criminal charges against him, law enforcement took him into custody. The list of charges includes not only money laundering, but also conspiracy to commit securities and wire fraud. as well as the most common crimes of electronic and securities fraud.

A few hours before his arrest, Bankman-Fried contested the allegation that he was participating in a wire fraud discussion group reportedly made up of FTX employees.