The Financial Stability Board (FSB) of the G20 group is set to present a regulation proposal for the cryptocurrency segment of the financial market. The regulator wants to emphasize that digital currencies are highly speculative assets.
The common regulator of the G20 group of countries has kept a relatively low profile in the field of cryptocurrencies until now. But the events of the last weeks and months on the cryptocurrency market have prompted the Financial Stability Board (FSB) to start preparing rules for regulating the digital finance sector.
Cryptocurrency Market Risk
The committee does not like the fact that the collapse of the cryptocurrency market increases systematic risk, brings large losses for investors and, in particular, can transfer mistrust from this segment to standard financial markets. “The FSB will report to G20 finance ministers and central bank governors in October on regulatory and supervisory approaches to stablecoins and other crypto-currency assets,” the Committee said.
The regulatory framework does not apply to cryptocurrencies
According to the FSB, cryptocurrency assets are mainly intended for speculative purposes, but are effectively exempt from the regulatory framework. Although according to the FSB rules and regulations should apply to them. The FSB also highlighted the risk of the potential misuse of cryptocurrencies for money laundering.