Joe Biden, the President of the United States of America, during the 2022 G20 leaders summit in Bali, called for stricter policies and regulations in the crypto industry.
He said in his statement:
“It is critical to build public awareness of risks, to strengthen regulatory outcomes, and to support a level playing field while harnessing the benefits of innovation.”
The leaders had already proposed a bill to regulate cryptocurrencies before now, but it was still being considered. The council is now ready to implement an international framework for cryptocurrency activities.
The statement further stated:
“…to ensure that the crypto-assets ecosystem, including so-called [traditional currency-pegged] stablecoins, is closely monitored and subject to robust regulation, supervision, and oversight to mitigate potential risks to financial stability.”
Since the emergence of cryptocurrencies in 2008. Government organizations have criticized the use of digital currency because of its anonymity and lack of centralization. According to the US Library of Congress, nine countries have banned cryptocurrencies, including China, Morocco, and Iraq.
The FTX scandal, which occurred two weeks ago, is one of the reasons for the regulation. FTX is a cryptocurrency exchange that declared bankruptcy after misusing customer funds. Billions of dollars have been lost since the crisis erupted. This event fueled the demand for regulation by thought leaders.
In March, President Biden issued an executive order to protect consumers and investors from the risks of digital assets and cryptocurrencies, as well as to establish a regulatory framework for crypto assets.
World leaders are stepping in to protect citizens’ interests and prevent such an event from happening again.
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