10 Regulatory Bodies You Should Know
Welcome to our “Do You Speak Crypto?” series!
At DIFX, we’re constantly looking for ways to raise awareness and improve knowledge within the crypto industry to lower the barriers to entry and drive mass adoption. Therefore, we’ve prepared a series of articles for you in which we’ll discuss common terms in different sections of the blockchain and crypto industry together.
Episode 13: Regulatory Bodies
The tragic crash of LunaUSD and withdrawal limits imposed by major cryptocurrency platforms, like Celsius Network and Voyager Digital, have caused turmoil in the crypto markets, forcing many customers to suffer huge losses. As a result, many regulatory bodies have expressed their concern over the current condition of the crypto markets, calling for a more robust and consistent regulatory framework.
Join us in this episode of the “Do You Speak Crypto?” series to learn more about some of the main regulatory bodies that may have an effect on the overall rules and regulations within the crypto market.
1. FATF
Financial Action Task Force (FATF)
FATF is one of the world’s most prominent policy-making bodies that aims to prevent money laundering and terrorist financing activities through its international standards.
According to its website, “FATF Standards ensure a coordinated global response to prevent organized crime, corruption, and terrorism”, with more than 200 countries and jurisdictions following them at present.
2. SEC
Security and Exchange Commission (SEC)
SEC is a government agency that oversees the US securities market to prevent market manipulation and provide a safe environment for investors. You’ve probably heard of this agency over the controversial encounters it had with Telegram or Ripple.
3. CFTC
Commodity Futures Trading Commission (CFTC)
Just like SEC, CFTC is a government agency that regulates the US derivatives market such as futures and options contracts to protect customers against market manipulation and fraud.
In 2015, CFTC declared Bitcoin as a commodity, putting it in the same category as oil and gold which gave the agency the authority to oversee the currency’s market.
4. FED
Federal Reserve (FED)
The Fed is the central bank of the united states and is responsible for the nation’s monetary policies focusing on employment rates, market stability, interest rates, and the overall US economy. In response to the cryptocurrencies’ popularity, Fed is considering launching the Digital Dollar, its own Central Bank Digital Currency (CBDC).
5. IMF
International Monetary Fund (IMF)
IMF is one of the institutions of the United Nations (UN) which focuses on economic policies that boost financial stability and economic health. In one of its latest articles, IMF called for comprehensive crypto regulations, stating:
The IMF’s mandate is to safeguard the stability of the international monetary and financial system, and crypto assets are changing the system profoundly.
6. ECB
European Central Bank (ECB)
ECB is the central bank of the European Union and oversees the European banks to preserve the financial stability within the area and keep the inflation rate steady and at bay.
ECB has expressed its concerns over the speculative nature of the cryptocurrencies and the risks associated with them quite a few times, highlighting their fast growth and the vast amount of investment entering the markets.
It’s worth mentioning that ECB is another central bank that is looking into having its own CBDC, called Digital Euro.
7. BIS
Bank of International Settlements (BIS)
BIS is an international institution currently owned by 63 central banks around the world, acting as a bank for central banks.
In its annual economic report, BIS mentioned that it’s actively working with the G20 on the regulation of cryptocurrencies.
8. FSB
Financial Stability Board (FSB)
Like many other international monetary bodies, the FSB tries to improve international financial stability by developing robust policies, standards, and regulatory frameworks and encouraging their implementation.
They’ve recently published a statement announcing that they would propose “regulatory and supervisory approaches to stablecoins and other crypto-assets” to the G20 Finance Ministers and Central Bank Governors in October.
9. BOE
Bank Of England (BOE)
BOE is the UK’s central bank and is responsible for controlling the monetary policies of the country by producing cash and changing the interest rates. Just like Federal Reserve, BOE is looking into the benefits and risks of having its own CBDC.
10. World Bank
Like IMF, World Bank is a financial institution of the United Nations (UN) that focuses on the international financial stability of the member countries. They’ve recently published a podcast on the role of cryptocurrencies in revolutionalizing development.
Didn’t find the terms you were looking for? No worries. Let us know in the comments so we can cover it for you in our next episode.
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About DIFX
DIFX is a centralized cross-asset crypto exchange that allows users to trade between multiple asset classes that include indices, forex, crypto, metals, and commodities, just to name a few. The DIFX fully-insured crypto wallet comes from a partnership with Fireblocks, one of the leading crypto custodians in the world.
The Nomination Program is another unique feature of DIFX that allows users to manage the future of their crypto assets by passing them on to their families and loved ones. Recently, the company unveiled its Futures trading platform in an attempt to further improve financial inclusion and freedom through innovations offered by blockchain technology.
DIFX was presented with the “Most Trusted Cross-Asset Trading Platform — 2022” by the Crypto Expo Dubai and “Best New Trading Platform Award” at the E-Business Awards 2021 by Entrepreneur Middle East and the Forex Expo 2021.
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