Global regulators say crypto currencies need vigilant monitoring
11 October 2018 - 11:24PM
ADVFN Crypto NewsWire
LONDON (Reuters) - Crypto assets such as bitcoin do not pose
a threat to financial stability but monitoring is needed along with
possible action to protect consumers, the global Financial
Stability Board said on Wednesday.
While price increases in crypto assets have been larger than
comparable historical asset bubbles, market capitalisation remains
small compared with other financial markets, the FSB said.
“Based on the available information, crypto-assets do not
pose a material risk to global financial stability at this time.
However, vigilant monitoring is needed in light of the speed of
market developments,” the FSB said in a statement.
Nonetheless, the FSB said: “Illiquidity, concentrated
ownership, fragmented market structure, and other issues also make
crypto-asets potentially susceptible to price
manipulation.”
It said total market capitalisation peaked at $830 billion
in January, with a third accounted for by bitcoin alone, dropping
to $210 billion by last week or just 2.8 percent of the global
value of gold.
“Crypto-assets also raise several broader policy issues,
such as the need for consumer and investor protection,” the FSB
said.
The board, which coordinates financial regulation for the
Group of 20 Economies (G20), published a 17-page report to
elaborate on its views on crypto assets.
The report confirmed an initial assessment the FSB gave to
G20 finance ministers and central bank governors in March that
there was not enough consensus for global rules, given the
differing approaches being taken nationally.
Earlier this week, however, European Union regulators said
tailored rules may be needed as warnings to investors about crypto
assets have not been effective.
The FSB said that monitoring potential risks in the sector
was challenging due to poor data on direct and indirect exposures
of banks and others.
Source: Reuters
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