Global Regulators Acting Fast to Control Digital Assets Like Crypto

The fast-growing sector of the cryptocurrency has been noticed by the regulators for a long time. However, work is going on to create a global framework for this. The ‘Financial Stability Board’ – a group of G20 economy regulators, central banks and the finance ministry – is looking at what needs to be done with cryptocurrencies like bitcoin and stablecoins. Even though international firms are trading with cryptocurrencies without any restrictions, cryptocurrency assets are treated differently around the world. The European Union is busy preparing standards for this.

In a webinar, Robert Ofel, president of French market watchdog AMF, said that regulators are following a ‘basic principle’ of uniform rules to cover risks. He said that the Financial Stability Board has no power to make binding rules. But its members are committed to incorporating their regulatory principles into the national rulebooks. Regulators are trying to track other parts of the increasingly digital financial market, such as social media and smartphones.

Verena Ross, president of EU securities watchdog ESMA, told a webinar that the watchdog is investigating ‘fininfluencers’, or social media influencers, who provide stock tips. He said that there is a need to monitor this fast growing sector.

Ophell said the EU needs a powerful watchdog to oversee the markets, just as the European Central Bank oversees the entire banking system. He said that the existing arrangements are not enough to monitor this digital world.

Speaking of Russia, it seems that the Russian government and the country’s central bank have reached an agreement on a plan to recognize crypto as a currency. There has also been talk about how to regulate bitcoin and other cryptocurrencies. This move is quite a relief, as only last month the Central Bank of Russia proposed to ban crypto mining and other activities related to it.

The Russian newspaper Kommersant has reported that the government and the Bank of Russia have reached an agreement to regulate cryptocurrency. Now the officials are preparing a draft, which is likely to come out by February 18. In this, crypto will be defined as an ‘analog of currencies’ instead of DFA (Digital Financial Assets).