Crypto-assets Do Not Pose a Material Risk to Global Financial Stability
The Financial Stability Board (FSB) noted in a recently published report:
Based on the available information, crypto-assets do not pose a material risk to global financial stability at this time. However, vigilant monitoring is needed in light of the speed of market developments ...
The report includes an assessment of the risks present in crypto-assets and their markets, such as low liquidity, the use of leverage, market risks from volatility, and operational risks. The FSB noted that crypto-assets raise several policy issues including: the need for consumer and investor protection; strong market integrity protocols; anti-money laundering and combating the financing of terrorism (AML/CFT); regulatory measures to prevent tax evasion; the need to avoid circumvention of capital controls; and concerns relating to the facilitation of illegal securities offerings.
The FSB is an international body that monitors and makes recommendations about the global financial system.