When engaging in similar activities, cryptoasset companies should set aside capital like banks, regulators proposed on Tuesday in their first global rules, as a “crypto winter” wiped out $2 trillion from the sector. The Financial Stability Board (FSB), which coordinates financial rulemaking among the Group of 20 (G20), issued nine recommendations for members to follow. The FSB’s chairman, Klaas Knot, said the “crypto winter,” or recent sharp drop in cryptocurrency prices, has reinforced the board’s assessment of existing structural vulnerabilities. The FSB stated that while crypto has a combined value of about $935 billion, compared to $3 trillion at their peak in November last year, it is not large enough to threaten financial stability, but rules are needed to regulate a likely recovery.
