Michael Hsu urged international cooperation and collaboration in a bid to prevent crypto firms from leveraging competition among jurisdictions.
The Financial Stability Board (FSB) Crypto Working Group met on Feb. 22. United States Acting Comptroller of the Currency Michael Hsu gave opening remarks at the meeting and shared thoughts on cooperation and collaboration in global supervisory activities.
Hsu devoted much of his short talk to the Bank of Credit and Commerce International (BCCI), an international bank that closed in 1991 after a seven-country operation against its money laundering and other financial crimes. Before its closure, BCCI had offices in over 72 countries. Hsu said:
Like BCCI, FTX had no single supervisor and its parent holding company was not subject to regulation in the jurisdiction where it was chartered. The collapse of BCCI led to enhanced supervision of international banks, Hsu said. In the United States, the Foreign Bank Supervision Enhancement Act (FBSEA) was one of the resulting enhancements.
