A few days before the next G20 meeting in Argentina, the Financial Stability Board (FSB) has published a framework to facilitate the monitoring of crypto markets and ICOs. If the regulatory body believes that digital assets do not threaten financial stability, it urges them to monitor them closely.
In an announcement on Monday, the Financial Stability Board revealed that a framework had been sent to the G20 Finance Ministers and Central Bank Governors ahead of their next meeting in Buenos Aires. July 21 and 22.
This report, developed jointly with the Committee on Payments and Market Infrastructures (CPMI) - a committee that brings together the governors of the central banks of the G10 member countries - presents a number of indicators "that will be used to monitor crypto-active markets. ".
Here is what can be read in this document [PDF]:
"The purpose of this framework is to quickly identify potential sources of financial stability concerns. To achieve this, it lists the indicators that are best able to highlight these risks, using data from public sources.
The main risk indicators concern the "Market Cap" (both in terms of size and growth), as well as the price and volatility levels of the main cryptocurrencies, in particular those of Bitcoin and Ether.
According to the FSB, this framework should "help to identify and contain the risks to consumers and investors, the integrity of markets, and potentially financial stability".
The regulator has also indicated that prices and exchange volumes in effect on crypto-markets were likely to be manipulated, through techniques such as "Pump and Dump" or "Spoofing". He believes that while "crypto-asset trading platforms do not pose a risk to global financial stability," they also raise other threats, related to "investor protection, to market integrity." , money laundering and terrorist financing ".
Chaired by Mark Carney, the Governor of the Bank of England, the FSB added:
"While the FSB believes that crypto-assets do not currently present a significant risk to financial stability, it recognizes the need for careful monitoring of these markets, in terms of the speed of their evolution. ".
International Authorities Take a Closer Look at Crypto Markets
At the same time, other international regulatory bodies are keenly interested in cryptocurrencies.
This is the case of the International Organization of Securities Commissions (IOSCO), which has set up a consultation network dedicated to ICOs, to discuss concerns related to this new form of fundraising. The organization should also provide a framework for governments to better understand their impact on local investors.
Another example is the initiative of the Basel Committee on Banking Supervision, which studies the direct and indirect exposure of banks to cryptocurrencies.
For its part, the Financial Action Task Force is expected to propose to the G20 member countries a study on the risks of money laundering and terrorist financing related to cryptocurrencies.
The publication of the Financial Stability Board's report follows a call from the G20 countries. At a meeting last March, its members asked that the first proposals for the development of a regulatory framework around cryptocurrencies be submitted before the end of July.
In a letter to G20 finance ministers and central bankers, Mark Carney had already said that crypto-assets do not pose a threat to the global financial system. He said that he could change his mind if they came to democratize as means of payment.
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