According to Cointelegraph, the Financial Stability Board (FSB) crypto working group met on February 22, 2024. It is believed that Michael Hsu, acting comptroller of the currency, United States, mentioned collaboration in global supervisory activities.
Sources revealed that FTX had no single supervisor and its parent company had no regulation in the jurisdiction where it was chartered. The collapse of the BCCI is expected to enhance the supervision of international banks, Hsu explained.
It is believed that Hsu emphasised the FSB principle of “same activity, same risk, same regulatory outcome” and noted that competition among jurisdictions can support cryptocurrency firms. Furthermore, “Even though the underlying blockchain technology is supposedly trust-resistant, nearly all cryptocurrency activities operate through intermediaries, whom users must trust,” Hsu added.
A representative of the Bank for International Settlements, is expected to highlight the practicality of tokenisation without blockchain. Furthermore, Hsu mentioned looking at “financial stability profiles of different scenarios” for tokenised real-world assets, concluded Cointelegraph.
(With insights from Cointelegraph)
