The Financial Stability Board (FSB) published a report that assesses the financial stability risks posed by crypto-assets. The report examines developments related to crypto-assets as well as the associated vulnerabilities in three segments of crypto-asset markets: unbacked crypto-assets (such as Bitcoin), stablecoins, and decentralized finance/other crypto-asset trading platforms. The report highlights wider public policy concerns related to crypto-assets, such as low levels of investor and consumer understanding of crypto-assets, money laundering, cyber-crime and ransomware. In a separate development, FSB published a letter to the G20 Finance Ministers and Central Bank Governors that lays out the planned policy work during 2022, a large part of which involves addressing climate risks.
The policy work for the year will involve supporting financial market adjustments to a post-COVID world, reinforcing financial system resilience, harnessing the benefits of digitalization, and addressing financial risks from climate change. The letter presents a complete list of FSB deliverables to the G20 in 2022. By July 2022, FSB plans to deliver the interim report on COVID-19 exit strategies to support equitable recovery for financial stability and scarring effects and the annual progress report on climate roadmap. Then, by October 2022, FSB plans to publish the following:
- Annual report on promoting global financial stability
- Final report on COVID-19 exit strategies to support equitable recovery for financial stability and scarring effects
- Report on policy proposals to address systemic risk in nonbank financial intermediation
- Best practices for reporting cyber incidents to financial authorities
- Annual report on implementation of the cross-border payments roadmap
- Key performance indicators to monitor progress toward the quantitative targets for the cross-border payments roadmap
- Final report on regulatory and supervisory approaches to addressing climate-related financial risks
- Joint report with NGFS on the outputs of climate risk scenario analysis by jurisdictions
- Progress report on achieving consistent climate-related financial disclosures
- Progress report on the regulation, supervision, and oversight of global stablecoins
- Press Release on Crypto-Assets
- Report on Crypto-Assets (PDF)
- Press Release on Work Priorities
- Letter on Work Priorities (PDF)
Keywords: International, Banking, Crypto Assets, G20, Stablecoins, Digital Currency, ML TF Risk, Cyber Risk, Covid 19, Climate Change Risk, Financial Stability, Scenario Analyses, Disclosures, ESG, Stress Testing, FSB, Subheadline
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