Financial Stability Board releases crypto monitoring framework for G20, which “should help to identify and mitigate risks to consumer and investor protection, market integrity, and potentially to financial stability.”
17 July, AtoZ Markets – The Financial Stability Board has published a framework for monitoring cryptocurrency assets. This organization is responsible for analyzing and developing recommendations for G20 concerning global financial systems.
Financial Stability Board Releases Crypto Monitoring Framework for G20
The new FSB’s cryptocurrency monitoring framework outlines a number of metrics that it will use to oversee the developing cryptocurrency markets. According to the organization itself, the framework “should help to identify and mitigate risks to consumer and investor protection, market integrity, and potentially to financial stability.”
The FSB has published this standardized network along with a report on Monday. It has been submitted to the ministers of G20 countries and to the central bank governors. As per the document, the overseeing efforts will mostly focus on cryptocurrency assets’ price volatility and the wider use of cryptocurrencies for payments and institutional exposure.
The framework will also look into the growth of the Initial Coin Offerings (ICO) market, as well as into the crypto’s market volatility in comparison to gold, currencies, and equities.
International Organization of Securities Commissions ICO Oversight Framework
The FSB is led by the Bank of England’s Governor, Mark Carney. The organization will also periodically issue reports in order to gather intelligence for market confidence. The FSB’s report also explained why this particular framework is necessary:
“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.”
Following on this, the report has mentioned that some other international regulatory organizations are planning to boost their efforts in an attempt to better monitor cryptocurrency sector. For example, the FSB notes the work of the International Organization of Securities Commissions. This organization is working on the development of its own guidelines that aim to aid member states to better analyze the influence of the domestic and foreign ICOs on investors.
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