In the wake of FTX_Official’s demise, Steven Maijoor, chair of the Financial Stability Board’s crypto working group, urged authorities worldwide to move beyond sectoral boundaries and agree on global norms for the industry. lavender_au reports.
published Wednesday, echoing Maijoor’s worries about it potentially threatening financial stability. The report said a number of crypto’s structural vulnerabilities are similar to those in traditional financial markets.
“Trust is built in drops, and lost in buckets,” Maijoor said, drawing parallels between crypto asset markets and the downfall of the Bank of Amsterdam three centuries ago, saying that “it is the FSB’s goal to learn from the past.” Maijoor, who is an executive board member of the central bank of the Netherlands and a member of the European Central Bank's supervisory board, said that many crypto markets are characterized by high levels of information asymmetry, making it often impossible to know which actors have bad intentions and which platforms are at risk of overreach.
He also said that “crypto cannot simply be considered a fad,” and that many crypto activities do not comply with existing regulation or take place outside of the regulatory perimeter. The cross border nature of crypto assets poses an obvious challenge for national supervisors,” Maijoor said, adding that they require regulatory response coordinated across borders which is “exactly what the FSB is working on.”
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