The Financial Stability Board (FSB), has recently offered a thumbs up to the crypto community as it provided a framework to G20 countries for monitoring cryptocurrency assets. The framework reads “monitor the financial stability implications of crypto-assets markets.”
The FSB is an international body which gauges the global financial system and shares its reports with G20 through interactions with governments and central banks.
This framework is being seen as a welcome move for the crypto world as it suggests governments and central banks to open their ecosystem for emerging global finance. However, a set of rules has to be pushed forward to build trust and bring more transparency into the upcoming globalisation.
According to the report, “crypto-assets do not pose a material risk to global financial stability at this time. At present, like crypto-assets in general, crypto-asset platforms do not pose global financial stability risks.”
“Nevertheless, they raise other significant concerns, including consumer and investor protection, market integrity and money laundering/terrorist financing, among others,” the guidelines further included.
The report garnered media limelight following world’s largest asset manager’s intention to explore the crypto space, possibly through entry into bitcoin futures.
“It took a generation for the internet to flatten much of the old media and retail world and it will take a generation to flatten evil old finance; we all know who they are, and so do they, but that new world is coming,” shared Clem Chambers, CEO of ADVFN.
FSB’s report has given clear indications that along with them, other global organisations are also moving forward to monitor various sectors of the crypto industry.
The International Organisation of Securities Commission is advancing their framework to help associated countries for better analysis of the impact of domestic and overseas ICOs on investors.
Also, the Basel Committee on Banking Supervision (BCBS) is collecting data related to its associated banks’ direct and indirect interaction with cryptocurrency to analyse the potential impact of blockchain technology.
A meeting held last weekend in Argentina, among G20 finance ministers and central bank governors gave a boost to the suggestions of FSB. The press release of the meeting expressed that the intention is to provide “the future of work, infrastructure for development, and a sustainable food future”.
From another shore, G20, which includes member nations that represent the world’s 85% of economic output, has recommended a roadmap for the associated countries and others to follow for exposing themselves to crypto assets. The organisation has indicated their confidence in FSB’s report to monitor the potential risk of crypto assets.
This report is an outcome of the G20 meet held in March 2018, focused on framing the global regulations of cryptocurrencies.