Bitcoin and crypto in the sights of the G20 and Biden

For the past two weeks, cryptocurrencies have been making headlines with the FTX case at the center of the debate. The bankruptcy of FTX is a real cataclysm in the crypto industry, a cataclysm that has already stripped many users. Faced with this financial tragedy, the G20 presidents who were recently in a summit in Bali did not remain indifferent. The American president Joe Biden has expressed himself on the need to establish a rigorous and coordinated regulation at the international level.

Towards global regulation of Bitcoin and cryptocurrencies!

While the wounds of the victims of the Terra Luna and Celsius collapses have yet to heal, the fall of FTX a few months after this series of tragedies calls into question the effectiveness of the regulation of the crypto sector.

With this in mind, US President Joe Biden spoke in a lengthy statement posted on the White House website following the latest G20 meeting in Bali. Several topics were on the agenda, including cryptocurrencies.

In the statement, The White House commends the ongoing work of the Financial Stability Board to regulate Bitcoin and cryptocurrency-related activities.

We welcome the ongoing work of the FSB and international standard setters to ensure that the crypto-asset ecosystem, including stablecoins are closely monitored and subject to robust regulation, supervision and oversight to mitigate risks to financial stability.

Joe Biden, President of the US

The collapse of FTX and Alameda Research shook the broader financial market, costing investors billions of dollars. Unsurprisingly, they have prompted audits and calls for serious regulation of the sector. The G20 is not the only one to show the red card.

During the month of October, the Financial Stability Board (FSB) worked on the issue of regulation. In its report published on October 11, it gave some proposals. However, its recommendations are based on the principle of “same business, same risk, same regulation”. According to this institution, the crypto sector should be subject to the same rules as traditional finance. In the end, the FTX crash is an excellent excuse to establish a CBDC to reduce the freedom of citizens.