advertisement

G20 Watchdog Releases Framework for ‘Vigilant’ Monitoring of Cryptocurrency

G20 | Financial Stability Board | Framework on cryptocurrencies | cryptocurrency updates | crypto updates

 

The Financial Stability Board (FSB), an organization focused on analyzing and making recommendations to the G20 on global financial systems, has presented a framework for monitoring cryptocurrency assets.

As its name suggests, the FSB is concerned with the stability of the global financial system. Founded in 2009, it is based in Basel and funded by the Bank for International Settlements. It is made up of representatives from the finance departments and central banks of all G20 countries – all in all, 68 institutions are members.

FSB “has developed a framework and identified metrics to monitor the financial stability implications of crypto assets markets.” The framework was developed in collaboration with the Committee on Payments and Market Infrastructures (CPMI).

The FSB – which is led by Bank of England governor Mark Carney – will also periodically compile qualitative reports to gather intelligence for market confidence, the report says.

The organization further sets out the reasoning behind the framework, saying:

“While the FSB believes that crypto assets do not pose a material risk to global financial stability at this time it recognizes the need for vigilant monitoring in light of the speed of market developments.”

Citing that the crypto market and its public data sources, which the proposed monitoring metrics are based on, are “rapidly evolving,” the FSB warned that “the quality of the underlying data can vary, and might not always be satisfactory.” The report explains:

“Market-related figures, such as metrics on prices, trading volumes, and volatility may be manipulated by generally prohibited practices such as ‘wash trading,’ ‘spoofing,’ and ‘pump and dump,’ the existence of which cannot be ruled out at this stage.”

While the FSB does not believe crypto assets pose a material risk to global financial stability, it supports “vigilant monitoring in light of the speed of developments and data gaps,” the report details.

KryptoMoney.com publishes latest news and updates about Bitcoin, Blockchain Technology ,Cryptocurrencies and upcoming ICO’s.

Get Latest Cryptocurrency And Bitcoin News

Signup this form below to get latest Cryptocurrency and Bitcoin news, directly in your mailbox

Note:

Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.