European G20 Leaders Want Immediate Control of Crypto Conglomerates

The European arm of the Financial Stability Board, which consists of central bankers, G20 Leaders, and financial regulators, reviewed the pressing need for regulation for crypto conglomerates in light of "recent events" and approved its study on stablecoins in October. As markets are in disarray following the alleged collapse of major exchange FTX, European financial stability watchdogs on Thursday urged swift action to regulate crypto conglomerates.

FSB Europe - Team of G20 Members

FSB Europe, a team of G20 members from Europe, along with representatives from the European Commission and European Banking Authority, who attended the frequent meetings in Lisbon, also announced plans to strengthen the regulation of digital assets.

Additionally, FSB members praised the central banker group's conclusions from October on stablecoins and governing digital currencies. The FSB is still accepting opinions on its cryptocurrency rules through December 15. An official report with regulatory suggestions is anticipated in the summer of 2023.

G20 Leaders Think It's Vital to Control Crypto Conglomerates

According to a news release, the G20 leaders of Europe concurred that it is vitally necessary to control alleged crypto conglomerates and exchanges that vertically combine numerous activities. The statement refers to the exchange's demise but does not explicitly address FTX's collapse.

The committee was presided over by representatives of the Swedish central bank and the United Kingdom Treasury and included financial regulators from France and Germany. The European Union indicated that it would use the recent FSB regulation proposal, which might compel conglomerates to disband and stablecoins to centralize control, as a model.