Financial Stability Board unveils monitoring framework for crypto-assets

Their framework focuses on ways risks from crypto-asset markets could potentially spread to other parts of the global financial system.

On Monday, global regulators published a framework for “vigilantly” monitoring risks from crypto-assets including ether and bitcoins. This is despite the fact that crypto-assets don’t pose any significant risk to financial stability, for now.

The framework by the Financial Stability Board (FSB), which incidentally facilitates and coordinates financial regulation for the Group of 20 Economies (G20).

Their framework focuses on ways risks from crypto-asset markets could potentially spread to other parts of the global financial system.

“Monitoring the size and growth of crypto-asset markets is critical to understanding the potential size of wealth effects, should valuations fall,” said the FSB in a statement. “The use of leverage, and financial institution exposures to crypto-asset markets are important metrics of transmission of crypto-asset risks to the broader financial system.”

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