The advisory group coordinating financial regulation for the G20 Group, the Financial Stability Board (FSB) presented the structure of monitoring risks related to cryptocurrency assets.
It’s about creating a framework that will allow you to track the impact of the cryptocurrency market on the traditional financial system. The purpose of the new structure is to identify any risks of financial stability at an early enough stage to take the necessary measures.
In particular, the Council has developed special metrics to assess threats that include the size of the crypto-currency market, as well as the impact on it of financial institutions and the number of financial products based on the cryptocurrency.
However, representatives of the Council warned that the data is still heterogeneous, as the cryptocurrency market is developing rapidly and can be “fragmented and opaque”, so they will assess whether the structure of additional data will require at a later stage.
“Monitoring the size and growth of the cryptocurrency market is crucial for understanding the possible effects that are created and their assessment” – the Council statement said.
The Council emphasizes that in general, the cryptocurrencies and trading platforms do not create global risks of financial stability, but they cause other serious problems related to the protection of consumers and investors, the integrity of the market, as well as money laundering and the financing of terrorism. Source: bits.media