The Financial Stability Board Urged for Proactive Crypto Regulation!

The Swiss financial watchdog - Financial Stability Board (FSB) urged regulators to act proactively to foresee the potential impact of cryptocurrency on financial stability. As the technology in cryptocurrency sector is fast-changing, this can lead to deficiencies in policy making on digital assets. The FSB said in a report for central bank governors and G20 finance ministers.

The report added that exposure to digital money can be used as a risk assessment tool to assess banks and other financial institutions. The FSB also stated that cryptocurrencies currently do not pose any material stability risk.

Regulations on cryptocurrencies vary across global bodies such as the Organisation for Economic Co-operation and Development and the Basel Committee on Banking supervision, with regulatory focus on financial stability, investor protection and money laundering.

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