The FSB will treat crypto companies the same as banks

The world’s largest financial watchdog, the FSB, plans to roll out regulatory guidelines for crypto in 2023.

According to the Financial Times, the FSB intends to set a timetable for global regulators in the coming months. It will enable them to implement its initial recommendations on global crypto regulationthis added.

The move is part of an accelerated push to regulate and restrict crypto activities after a high-profile year corporate disaster. However, what most policy makers fail to understand is that crypto is not the culprit, it is the people running these centralized lending companies who are at fault.

Regulating Crypto as Banks

FSB Secretary General Dietrich Domanski told the FT that the regulator is looking for a clear path for the crypto industry. Dispelling fears that they are on the verge of wiping out the fledgling financial sector, he added:

“Many players in the crypto market claim that the authorities are hostile to innovation. I would say that so far the authorities have been quite accommodating. . . recent events have reinforced the recognition that there is indeed an urgent need to address the risks.

However, he also said the goal would be to regulate crypto service providers the same as banks “if they provide the same service as banks.”

Domanski said such rules would prevent Terra and FTX Calamities since neither would have met the “good governance criteria”.

In other words, the FSB seems to want to ban all crypto companies that do not meet the criteria for a banking license, that is, pretty much all.

Following the financial crisis of 2008 (caused by the banks), the FSB implemented a global policy to force banks to raise billions and put in place stricter risk management frameworks.

End of financial freedom

Banks have eroded financial freedom over the years with their increasing demands for personal and financial data from customers.

A handful of terrorists and money launderers have made life hell for the remaining 99% of the population. Regular banking is very restrictive with lots of extra paperwork and KYC to open accounts, high fees, slow transactions, limits on money movement, and proof of funding or source of capital.

Banks punish their customers, assuming they do no good until proven innocent. This is what crypto was created for, but it seems the powers that be just want to turn it into mainstream finance with all the headaches that go along with it.