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RIYADH: Bitcoin, the leading cryptocurrency internationally, traded lower on Monday, down 3.70 percent to $20,539 at 12.10 p.m. Riyadh time.
Ether, the second most traded cryptocurrency, was priced at $1,144, down 3.67 percent, according to data from CoinDesk.
G20 watchdog to propose first global crypto rules in October
The Financial Stability Board on Monday said it would propose “robust” global rules for cryptocurrencies in October, following recent turmoil highlighting the need to regulate the “speculative” sector.
The FSB, a body of regulators, treasury officials and central bankers from the Group of 20 economies, has limited itself to monitoring the crypto sector, saying it did not pose a systemic risk.
But recent turmoil in crypto markets has highlighted their volatility, structural vulnerabilities and increasing links to the wider financial system, the FSB said.
“The failure of a market player, in addition to imposing potentially large losses on investors and threatening market confidence arising from crystallization of conduct risks, can also quickly transmit risks to other parts of the crypto-asset ecosystem,” the FSB said in a statement.
“The FSB will report to the G20 finance ministers and Central Bank governors in October on regulatory and supervisory approaches to stablecoins and other crypto-assets,” the statement added.
The FSB has no lawmaking powers but its members commit to applying its regulatory principles in their jurisdictions.
Blockchain.com faces $270m hit on bad loans
Cryptocurrency exchange Blockchain.com could lose $270 million on its loans to bankrupt crypto hedge fund Three Arrows Capital, a source with knowledge of the matter said on Friday.
The development comes days after 3AC filed for Chapter 15 bankruptcy, seeking protection from creditors in the United States after one of the most high-profile blowups of the crypto crash this year.
“Three Arrows is rapidly becoming insolvent, and the default impact is approximately $270 million worth of cryptocurrency and US dollar loans from Blockchain.com,” Blockchain.com’s CEO Peter Smith said in a letter to shareholders, according to a company spokesperson.
CoinDesk first reported the news.
Earlier this week, digital asset exchange Genesis Trading also said it had been exposed to 3AC but had mitigated its losses after the hedge fund failed to meet a margin call.