As per Dutch economist Klaas Knot, uniform global regulations for crypto can be formed by the Financial Stability Board. The global watchdog based in Switzerland looks after G-20 nations and is on a mission to develop rules to avoid mishaps like the 2008 housing crisis.
Klass was reportedly responding to several calls from jurisdictions around the nations, including the European Union to work on an internationally accepted framework for the crypto sector. The FSB had previously described the crypto sector as a “growing and largely unregulated sector” which could enable financial crime and crush investor confidence. As per Klass, the process wouldn’t have to be started from scratch
The global watchdog said that it would join the Financial Action Task Force and OECD, which are jointly responsible to avert money laundering and threats. They also develop tax rules for the crypto sector. Such bodies provide a fundamental base and a benchmark to countries wanting to develop laws.
At an annual meeting of the International Swaps and Derivatives Association in Madrid, Klass said:
The FSB is well placed to take a leading role in the design of a coherent global regulatory framework for crypto assets.
The EU and its top-ranking officials like Mairead McGuinness, the financial services commissioner have also called for a “global agreement on crypto” to safeguard stability, limit the environmental effect of mining, and for investor protection.