The Financial Stability Board (FSB) and other international regulators teamed up in order to monitor Bitcoin and other cryptocurrency assets in the wake of their skyrocketing popularity. While admitting that crypto market doesn’t threaten global financial stability, they want to discover the potential risk of digital currencies and their influence on different aspects of the economy.
FSB and international standard-setters working on crypto-asset issues including consumer and investor protection, market integrity, and monitoring financial stability implications @BIS_org @IOSCOPress #cryptoassets https://t.co/9i34oSkttI pic.twitter.com/T1q8B9j8P3— The FSB (@FinStbBoard) July 16, 2018
FSB (which sets up regulatory standards for G20 economies) published a report that outlines the main principles of monitoring crypto assets. The aforementioned report came after the G20 meeting that partially focused on the problem of integrating cryptocurrencies in the modern financial system.
First of all, regulators will pay attention to such aspects as market capitalization of crypto assets, their price fluctuations and possible growth. ICOs are also under the radar because of their transparency issues: many developers opt to remain anonymous not publicly disclosing their identity and location. On top of that, FSB tries to discover the impact of fraudulent activities on crypto consumers’ confidence.
Global regulatory effort
Cryptocurrencies are only getting bigger, so major markets around the world start prioritizing common-sense regulations. This is a win-win situation because effective regulations may potentially bring decentralized economy into mainstream while protecting customers and the economic interests of a given country.