G20 Financial Stability Board Publishes New Crypto Asset Monitoring Framework
G20’s Financial Stability Board Develops Crypto Monitoring Framework
The international community is set on the mission of regulating the crypto activity around the world. Recently, the Financial Stability Board (FSB), which is an international body created by the G20 nations that have the mission of coordinating the global financial system, has published a new framework that will be used to monitor crypto assets internationally.
The announcement of the new framework has happened today and it revealed a new framework that will be given to the G20 finance ministers on the new G20 meeting in Buenos Aires, which will happen on July 21 and 22.
Metrics To Monitor Crypto Assets
The framework has a number of metrics that the organization will use to monitor the market and its assets. It was developed by a committee that had the governors of the central banks of the G10 nations and has the objective of identifying financial stability concerns in a timely manner.
Primary risk metrics use many variables of different tokens and markets that have the goal of assessing the risks of the market, price levels and volatility rates. Data also includes market cap and price levels.
Other points that will be considered in the metrics of the company are ICO issuance and capital inflows and outflows. By doing this, the framework will monitor the risks of scam and mitigate risks for investors.
Mark Carney, the Bank of England governor and chair of the FSB, believes that while the cryptos do not offer a risk to the global stability of the world, they need to be monitored closely because their market develops fast and problems could still arise.
Other Institutions Have Substantial Work Regulating The Crypto Market
This industry regulation does not come from the FSB alone. Other institutions like the International Organization of Securities Commission (IOSCO), the Financial Action Task Force (FATF) and the Basel Committee on Banking Supervision (BCBS) already have their hands full.
The IOSCO has established a set of rules for Initial Coin Offerings (ICOs) and a consultation network to discuss concerns and a support framework for this kind of investment.
BCBS has established to study the central banks’ direct and indirect exposure to cryptos and should supervise their relations. Finally, the FATF will make reports about money being used to finance terrorism.