On October 10, 2018, the Financial Stability Board published a report entitled "Crypto-asset markets: Potential Channels for future financial stability," in which it outlines its findings following its assessment of the crypto-asset markets in 2018.

The FSB has considered the primary risks present in crypto-assets markets as low liquidity, volatility, leverage risks, as well as technological and operational risks (including cyber security risks). The FSB considers that crypto-assets lack the key attributes of sovereign currencies and do not serve as a common means of payment, a stable store of value or a mainstream unit of account. Based on the available information, the FSB considers that crypto-assets do not pose a material risk to global financial stability at this time. However, the FSB's report highlights that there could be financial stability implications from these primary risks through a variety of transmission channels including: (i) confidence effects; (ii) financial institutions' exposures to crypto-assets, related financial products and entities that are financially impacted by crypto-assets; (iii) the level of market capitalization of crypto-assets; and (iv) the extent of their use for payments and settlements.

The FSB calls for vigilant monitoring of this rapidly developing area and its report includes details of the monitoring framework it has developed to track the evolution of crypto-assets markets over time. The Report is available at: http://www.fsb.org/2018/10/crypto-asset-markets-potential-channels-for-future-financial-stability-implications/.

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