FSB Report on Work of FSB and Standard-Setting Bodies on Crypto-Assets
FSB published a report summarizing the work of FSB and other standard-setting bodies on crypto-assets. The report was delivered to the G20 Finance Ministers and Central Bank Governors.
While FSB believes that crypto-assets do not pose a material risk to global financial stability at this time, it recognizes the need for vigilant monitoring in light of the speed of market developments. Key highlights of the work of standard-setting bodies are as follows:
- FSB developed a framework, in collaboration with CPMI, to monitor the financial stability implications of developments in crypto-asset markets. The framework sets out the metrics that FSB will use to monitor crypto-asset markets as part of its ongoing assessment of vulnerabilities in the financial system. The framework also includes metrics on trading volumes, pricing, clearing, and margining of crypto-asset derivatives. Metrics on exposures will become part of the framework to the extent that they become available.
- CPMI conducted significant work on applications of distributed ledger technology and is conducting outreach, monitoring, and analysis of payment innovations.
- IOSCO established an initial coin offering (ICO) Consultation Network to discuss experiences and concerns about ICOs. It is developing a Support Framework to assist members in considering how to address domestic and cross-border issues stemming from ICOs that could impact investor protection. IOSCO is also discussing other issues around crypto-assets, including, for example, regulatory issues around crypto-assets platforms.
- BCBS is assessing the materiality of banks’ direct and indirect exposures to crypto-assets, clarifying the prudential treatment of such exposures, and monitoring developments related to crypto-assets for banks and supervisors.
FSB Chair Mark Carney in his letter to G20 Finance Ministers and Central Bank Governors, in March 2018, noted that crypto-assets raise a host of issues around consumer and investor protection, along with their use to shield illicit activity and for money laundering and terrorist financing. The Financial Action Task Force will report separately to the G20 on its work concerning the money laundering and terrorist financing risks related to crypto-assets.
Related Links
Keywords: International, Securities, Banking, Crypto-Assets, Initial Coin Offerings, DLT, CPMI, IOSCO, BCBS, FSB
Previous Article
EBA Opinion on Measures to Address Macro-Prudential Risk in BelgiumRelated Articles
BIS Examines Use of Big Data and Machine Learning at Central Banks
BIS published a paper that provides an overview on the use of big data and machine learning in the central bank community.
APRA Finalizes Reporting Standard for Operational Risk Requirements
APRA finalized the reporting standard ARS 115.0 on capital adequacy with respect to the standardized measurement approach to operational risk for authorized deposit-taking institutions in Australia.
ECB Publishes Guide for Determining Penalties for Regulatory Breaches
ECB published a guide that outlines the principles and methods for calculating the penalties for regulatory breaches of prudential requirements by banks.
MAS Sets Out Good Practices to Manage Operational Risks Amid COVID
MAS and The Association of Banks in Singapore (ABS) jointly issued a paper that sets out good practices for the management of operational and other risks stemming from new work arrangements adopted by financial institutions amid the COVID-19 pandemic.
ACPR Announces New Data Collection Application for Banks and Insurers
ACPR announced that a new data collection application, called DLPP (Datalake for Prudential), for collecting banking and insurance prudential data will go into production on April 12, 2021.
BCB Maintains CCyB at 0%, Initiates First Cycle of Regulatory Sandbox
BCB announced that the Financial Stability Committee decided to maintain the countercyclical capital buffer (CCyB) for Brazil at 0%, at least until the end of 2021.
EIOPA Launches Study on Non-Life Underwriting Risk in Internal Models
EIOPA has launched a European-wide comparative study on non-life underwriting risk in internal models, also kicking-off of the data collection phase.
SRB Publishes Overview of Resolution Tools Available in Banking Union
SRB published an overview of the resolution tools available in the Banking Union and their impact on a bank’s ability to maintain continuity of access to financial market infrastructure services in resolution.
EBA Consults on Pillar 3 Disclosure Standards for ESG Risks Under CRR
EBA is consulting on the implementing technical standards for Pillar 3 disclosures on environmental, social, and governance (ESG) risks, as set out in requirements under Article 449a of the Capital Requirements Regulation (CRR).
ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting
ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting