{"id":560385,"date":"2023-03-07T06:44:27","date_gmt":"2023-03-07T03:44:27","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/home-regulator-could-solve-cryptos-fragmented-supervision-issue-comptroller\/"},"modified":"2023-03-07T06:44:27","modified_gmt":"2023-03-07T03:44:27","slug":"home-regulator-could-solve-cryptos-fragmented-supervision-issue-comptroller","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/home-regulator-could-solve-cryptos-fragmented-supervision-issue-comptroller\/","title":{"rendered":"# &#8216;Home&#8217; regulator could solve crypto&#8217;s &#8216;fragmented supervision&#8217; issue: Comptroller"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a29da3fa65a6\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a29da3fa65a6\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/home-regulator-could-solve-cryptos-fragmented-supervision-issue-comptroller\/#%E2%80%9D_%E2%80%98Home_regulator_could_solve_cryptos_%E2%80%98fragmented_supervision_issue_Comptroller_%E2%80%9C\" >&#8221; &#8216;Home&#8217; regulator could solve crypto&#8217;s &#8216;fragmented supervision&#8217; issue: Comptroller &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_%E2%80%98Home_regulator_could_solve_cryptos_%E2%80%98fragmented_supervision_issue_Comptroller_%E2%80%9C\"><\/span>&#8221; &#8216;Home&#8217; regulator could solve crypto&#8217;s &#8216;fragmented supervision&#8217; issue: Comptroller &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDMvNzNiZjJmYTEtYTBmNi00ZDBkLWE4NDMtODYxMDY5MDM5N2UyLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-48054ca8>Cryptocurrency firms operating multiple entities in different countries should be overseen by one consolidated \u201chome\u201d regulator to stop them from playing &#8220;<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a>s&#8221; aimed at skirting regulators, the acting head of the United States banking regulator has opined.<\/p>\n<p>Michael Hsu, the Acting Head of the Comptroller of the Currency (OCC) made the comments in prepared <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.occ.gov\/news-issuances\/speeches\/2023\/pub-speech-2023-23.pdf\">remarks<\/a> for the Mar. 6 Institute of International Bankers conference in Washington, D.C.<\/p>\n<p>The OCC is a bureau within the Treasury Department that regulates U.S. banks and aims to ensure the safety of the country&#8217;s banking system. It has the power to permit or deny banks from engaging in crypto-related activities.<\/p>\n<p>In his speech, Hsu provided \u201cuseful lessons for crypto\u201d from traditional banking on how to maintain trust globally.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Good to hear from Acting Comptroller <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/USOCC?ref_src=twsrc%5Etfw\">@USOCC<\/a> Michael Hsu. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/IIBAWC2023?src=hash&amp;ref_src=twsrc%5Etfw\">#IIBAWC2023<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/SWFGaUC0yv\">pic.twitter.com\/SWFGaUC0yv<\/a><\/p>\n<p>\u2014 IIB (@IIB<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/IIBnews\/status\/1632826126035738624?ref_src=twsrc%5Etfw\">March 6, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>He claimed unless a crypto firm is regulated by one entity, those operating with businesses in multiple jurisdictions will \u201cpotentially play shell games\u201d by arbitraging regulations and would subsequently be able to \u201cmask their true risk profiles.\u201d<\/p>\n<blockquote><p>\u201cTo be clear, not all global crypto players will do this. But we won\u2019t be able to know which players are trustworthy and which aren\u2019t until a credible third party, like a consolidated home country supervisor, can meaningfully oversee them.\u201d<\/p><\/blockquote>\n<p>\u201cCurrently, no crypto platforms are subject to consolidated supervision. Not one,\u201d he added.<\/p>\n<p>The bankruptcy of crypto exchange FTX was used as an example of why the space needed a \u201chome\u201d regulator. Hsu compared the exchange to the equally-defunct Bank of Credit and Commerce International (BCCI) \u2014 a global bank that was found to be involved in a litany of financial crimes.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Acting Comptroller of the Currency Michael J. Hsu discusses the failure of the Bank of Credit &amp; Commerce International in 1991 that led to significant changes in how global banks are supervised &amp; its similarities to the crypto exchange FTX. Learn more at <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/HD1T3KHcss\">https:\/\/t.co\/HD1T3KHcss<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/7e45zgMbE6\">pic.twitter.com\/7e45zgMbE6<\/a><\/p>\n<p>\u2014 OCC (@USOCC) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/USOCC\/status\/1632838103856553986?ref_src=twsrc%5Etfw\">March 6, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Hsu said the \u201cfragmented supervision\u201d of both firms meant no one authority or auditor could develop a \u201cconsolidated and holistic view\u201d of them as they operated across countries with no framework for information sharing between authorities.<\/p>\n<blockquote><p>\u201cBy seemingly being everywhere and structuring entities in multiple jurisdictions, they were effectively nowhere and were able to evade meaningful regulation.\u201d<\/p><\/blockquote>\n<p>In his reasoning for advocating such oversight, Hsu expressed that arguments in the Bitcoin (BTC) whitepaper were \u201celegant\u201d but crypto \u201chas proven to be extraordinarily messy and complex.\u201d<\/p>\n<p>He added peer-to-peer payments are \u201cvirtually nonexistent\u201d and crypto has primarily become an alternative asset class dominated by trading activity that relies on inter<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>tes for it to \u201coperate at any scale.\u201d<\/p>\n<blockquote><p>\u201cThe events of the past year have shown that trust in those intermediaries can be quickly lost, large numbers of individuals can be hurt, and knock-on effects to the traditional financial system can result.\u201d<\/p><\/blockquote>\n<p>Hsu said the international bodies that identified the necessity for a \u201ccomprehensive global supervisory and regulatory framework for crypto participants\u201d might look to the lessons learned from the BCCI case.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Treasury Secretary Janet Yellen calls for \u2018strong regulatory framework\u2019 for crypto activities<\/em><\/strong><\/p>\n<p>The Financial Stability Board (FSB), the International Monetary Fund (IMF), the International Organization of Securities Commissions (IOSCO) and the Bank for International Settlements (BIS) were the bodies Hsu named in particular.<\/p>\n<p>The FSB, IMF and BIS are currently working on papers and recommendations to establish standards for a global crypto regulatory framework<\/p>\n<p>\u201cTrust is a fragile thing. It is hard to earn, and easy to lose,\u201d Hsu stated.<\/p>\n<blockquote><p>\u201cRegulatory coordination and supervisory collaboration can help mitigate the risks of losing that trust. We have learned this the hard way in banking. I believe it contains useful lessons for crypto.\u201d<\/p><\/blockquote>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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Michael Hsu, the Acting Head of the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":560386,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-03\/73bf2fa1-a0f6-4d0d-a843-8610690397e2.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74888,110413,74858,55229,70934,67874],"class_list":["post-560385","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-banking","tag-bitcoin-industry","tag-bitcoin-regulation","tag-law","tag-regulation","tag-united-states"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/560385","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=560385"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/560385\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/560386"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=560385"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=560385"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=560385"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}