The Financial Stability Board (FSB), a body founded in the aftermath of the global financial crisis, made a series of recommendations on rules for crypto in 2023, to try to bring it in line with the mainstream financial sector.
In Thursday’s review, it said while some progress had been made, international implementation and co-ordination of rules remained too “fragmented, inconsistent, and insufficient to address the global nature of crypto-asset markets”.
Financial stability risks remain “limited at present”, it assessed, but they are now rising with the surge in bitcoin and other cryptocurrencies, having doubled the value of the global crypto market to $4 trillion over the last year.
“This is consequential,” FSB Secretary General John Schindler told Reuters, describing the concerns raised in the review. “These crypto assets can move across borders very easily, much more easily than other financial assets.”
This year’s surge in the value of the crypto market has come against a backdrop of United States (US) President Donald Trump’s pro-crypto stance.
Schindler said there was a need for close monitoring as crypto becomes increasingly connected with the traditional financial system and stablecoins, cryptocurrencies pegged to the dollar for the most part, become more widely used.
One of the key concerns flagged by the FSB’s report was that hardly any countries have complete regulatory frameworks for stablecoins yet.
–Reuters–
