- According to the FSB, there is a need for increased regulation in the crypto industry.
- Multifunction crypto firms are those that combine trading and other activities, said the FSB.
- The FSB noted that collapses in multifunction crypto firms could destabilize traditional finance.
The Financial Stability Board (FSB), a global organization that regulates and makes recommendations regarding the global financial system, has said there is a need for increased regulation in the crypto industry.
According to its recent report, the monitoring organization noted that increasing regulatory measures would tackle the potential destabilization of the wider financial sector by crypto firm collapses.
The report mentioned multifunction crypto-asset intermediaries (MCIs), which are firms that offer combinations of crypto-asset services that are typically conducted by separate legal entities in traditional finance.
Binance, FTX, and Coinbase (NASDAQ:COIN) are examples of MCIs mentioned in the report. Moreover, the report claimed that the collapse of FTX showed that MCIs represent a critical part of the market and can exacerbate structural vulnerabilities.
According to the FSB, vulner…
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