European G20 leaders call for urgent regulation of 'crypto conglomerates'

Quick Take

  • Europe’s financial leaders said that crypto conglomerates and exchanges are in need of urgent regulation.
  • The regulators and central bankers also touted their last consultative reports on stablecoin and crypto asset regulation.

Central bankers and financial regulators making up the Financial Stability Board’s European arm discussed the urgent need to regulate crypto given “recent developments,” and endorsed their October report on stablecoins.

Europe’s financial leaders agreed on the urgent need to regulate “so-called crypto conglomerates and exchanges that vertically integrate multiple functions," according to a press release. The statement does not directly cite the implosion of FTX, but comes in the context of the exchange's failure.

The group of European G20 members making up FSB Europe, along with leadership for the European Commission and European Banking Authority, which joined the regular meeting in Lisbon, also expressed intentions to tighten regulation over digital assets.  

FSB members further touted the central banker group's October reports on stablecoins and regulating digital currencies. 

Comments on the FSB’s crypto regulations are still open until Dec. 15, and a final report of regulatory recommendations is expected in the summer of 2023.

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