On July 16, 2018, the FSB issued a report to the G20 providing an overview of its current work on crypto- assets and that of the international standard setters, namely the Committee on Payments and Market Infrastructures, the International Organization of Securities Commissions and the Basel Committee. The G20 Ministers of Finance and Central Bank Governors issued a communiqué in March 2018 stating that they were concerned that crypto-assets raise a number of problematic issues in the contexts of consumer and investor protection, market integrity, tax evasion, money laundering and terrorist financing. The G20 highlighted that crypto-assets may also have implications for financial stability and called on the FSB to provide a report on ongoing work by July 2018.
The report highlights that:
- The FSB has been working in collaboration with the CPMI to develop a framework and the associated metrics for monitoring the financial stability implications of crypto-assets markets.
- The CPMI has been analyzing applications of distributed ledger technology. It is also engaged in outreach, monitoring and analysis of payment innovations.
- IOSCO has established a Consultation Network on Initial Coin Offerings. The Network provides a forum for members to discuss experiences and concerns related to ICOs. IOSCO is also developing a Support Framework to identify ways to address domestic and cross-border investor protection issues. Additionally, IOSCO is discussing other issues around crypto-assets, including regulatory issues around crypto-assets platforms.
- The Basel Committee is quantifying the materiality of banks' direct and indirect exposures to crypto-assets, clarifying the prudential treatment of such exposures. The Basel Committee also continues to monitor developments related to crypto-assets and FinTech, following its publication "Sound Practices on the implications of FinTech developments for banks and bank supervisors" in February 2018.
The FSB Report is available at: http://www.fsb.org/wp-content/uploads/P160718-1.pdf.
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