International plans to break up major crypto conglomerates appear to have been given a boost by the collapse of FTX, with allegations of misuse of funds revealing regulators’ worst fears to be true.

Now major traditional finance (TradFi) players are egging on international standard setters to be yet bolder in tackling perceived excesses by the crypto sector – despite warnings from Binance and Coinbase that they could end up limiting the benefits of blockchain technology, documents published Wednesday reveal.

The companies were responding to a consultation opened in October 2022 in which the Financial Stability Board (FSB) proposed a “comprehensive” international crypto rulebook covering financial stability and consumer protection – just as the standard-setter sought to do for TradFi in the wake of the 2008 crisis.

(By Jack Schickler)