Bitcoin, Cryptocurrency And Blockchain News

Financial Stability Board Present Framework for Monitoring Crypto Assets


The Financial Stability Board (FSB) has today submitted a report to the G20, outlining work done and progress made by several standard-setting bodies, with a focus on ICOs, crypto, exchanges and use cases, as well as commenting on potential threats and pitfalls.

This report from the FSB has come as  direct result of the G20 meeting in March, when a July deadline for data requirements and monitoring recommendations was made. This report from the FSB, headed by Bank of England governor Mark Carney, will be followed by regular qualitative reporting.

Key Takeaways

The Committee on Payments and Market Infrastructures (CPMI) has noted the decline in the use of cash, and the challenges that this presents for banking organizations. It has clearly warned of the dangers of a bank-backed crypto though:

However, responding directly to the challenge with a central bank digital currency
(CBDC) would be an entry into uncharted territory.

Meanwhile, the International Organization of Securities Commissions (IOSCO) – the regulator for the world’s securities and futures markets, has focused on criminal issues while stating that asset platforms are not a global financial issue:

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/terrorism financing, among others.

Finally, the Basel Committee on Banking Supervision (BCBS) – the standard setter for banking regulations – has been focusing on data collection:

One challenge encountered in the existing analyses related to crypto-assets is the scarcity of
reliable data on banks’ holdings of crypto-assets. Accordingly, the BCBS is currently
conducting an initial stocktake on the materiality of banks’ direct and indirect exposures to
crypto-assets. In principle, this could be followed by a structured data collection exercise on
crypto-assets as part of the BCBS’s half-yearly Basel III monitoring exercise.

If nothing else, the report shows that there is still a lot of uncertainty and caution from such bodies, who are still gathering information and data. Judging by this, it seems that sweeping regulatory measures passed down from the G20 are a way off yet.

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