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
FDIC Proposes Amendments to Real Estate Lending Standards
FDIC is seeking comments on a rule to amend the interagency guidelines for real estate lending policies—also known as the Real Estate Lending Standards.
ISDA Consults on Implementation of Fallbacks for Certain Swap Rates
ISDA is consulting on the implementation of fallbacks for the sterling LIBOR ICE Swap Rate and for the USD LIBOR ICE Swap Rate.
BIS and BoE Launch Innovation Hub in London
BIS and BoE launched the BIS Innovation Hub Center in London, which is the fourth new Innovation Hub Centre to be opened in the past two years.
ESRB Recommends Reciprocation of Certain Macroprudential Measures
ESRB published recommendations on the reciprocation of macro-prudential measures in Belgium, France, Luxembourg, Norway, and Sweden.
US Agencies Set Out Unified Agenda for Planned Regulatory Actions
SEC announced that the Office of Information and Regulatory Affairs released the Spring 2021 Unified Agenda of Regulatory and Deregulatory Actions.
EC Publishes Regulation on Key Aspects of Implementation of SA-CCR
EC published the Delegated Regulation 2021/931, which supplements the Capital Requirements Regulation (CRR or Regulation 575/2013) with regard to the regulatory technical standards specifying the method for identifying derivative transactions with one or more than one material risk driver.
BCBS Consults on Prudential Treatment of Cryptoasset Exposures
BCBS is consulting on preliminary proposals for the prudential treatment of cryptoasset exposures of banks.
EBA Revises List of Validation Rules for Reporting
EBA issued a revised list of validation rules under the implementing technical standards on supervisory reporting.
Banking Authorities and Private Sector Collaborate on Wholesale CBDC
BIS Innovation Hub, BDF, and SNB announced that, together with a private-sector consortium led by Accenture, they will conduct an experiment using wholesale central bank digital currency (wCBDC) for cross-border settlement.
ESAs Publish Amended Implementing Standards on Mapping of ECAIs
ESAs published two amended implementing technical standards on the mapping of credit assessments of External Credit Assessment Institutions (ECAIs).
