Yesterday, the Financial Stability Board (FSB) had its plenary meeting in Basel at which one of the topics was crypto-assets and the collapse of the FTX cryptocurrency exchange.
It noted that the crypto-asset sector has remained relatively separate from mainstream finance so far, but that’s changing quite quickly, creating increasing risk.
Secondly, it observed that crypto exchanges like FTX tend to merge several roles that are deliberately separate in TradFi and action needs to be taken to address this. Specifically, they referred to “concentrations of risk, conflicts of interest, and a misuse of client assets.”
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