The G20 Council published a report on the results of work on new regulation of the digital market, which states that cryptocurrency does not pose a threat to global financial stability.
The Federal Security Service (FSB), which was founded in 2009, is located in the city of Basel and financed by the Bank for International Settlements, is responsible for the stability of the global financial system. The FSB includes representatives of central banks and financial institutions of all G20 countries. The FSB does not have any enforcement power, but can make recommendations, and in April the FSB developed software that can help firms comply with G20 laws.
The Committee on Payment and Market Infrastructures (CPMI), the International Organization of Securities Commissions (IOSCO) and the Basel Committee on Banking Supervision (BCBS) are also helping to develop FSB regulation.
In the report, the FSB states that, in its opinion, cryptocurrency will not have a negative impact on market stability, but the market should be monitored so that such a situation does not arise in the future. To carry out such monitoring, the FSB and CPMI will assess the size of the cryptocurrency market, the exposure of financial institutions to this market, and the number/features of financial cryptocurrency derivatives.
Meanwhile, IOSCO has focused on regulating the initial coin offering. Through the ICO Advisory Network, she will help regulators in different countries develop relevant regulations. IOSCO also recognizes the importance of crypto exchanges and intends to cooperate with BCBS in determining the appropriate rules for regulating them.
BCBS, in turn, is exploring the relationship between banks and cryptocurrencies. That is, it tries to determine the level of influence banks exert, but the process is hampered by the lack of accurate data.
The Advisory Council's report is intended for G20 finance ministers and central bank governors, who are due to meet to discuss the issue in Buenos Aires on July 21-22.
The FSB is currently headed by Mark Carney, a Canadian who is also the head of the Bank of England. Earlier this year, he stated that considers bitcoin to be an asset rather than a viable currency.
However, the Bank of England is considering the possibility of developing own cryptocurrency, for which a special committee was created back in January.
According to financemagnates.com
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