The Financial Stability Board (FSB), the entity which coordinates the financial regulation for the G20 countries, has rejected the calls for cryptocurrency regulation which came from several countries.
The FSB, however, stressed the need for greater international coordination in monitoring these rapidly evolving technologies, which still represent a tiny sector equivalent to less than 1% of the global gross domestic product.
The future FSB plans are to oversee the current cryptocurrencies regulation and not to introduce new ones
“The first assessment of the FSB is that currently, these crypto-assets do not pose a risk to global financial stability,” said Mark Carney, the President of the FSB, in a letter he sent to the finance ministers and governors of central banks, which will meet in Buenos Aires on March 20th and March 21st.
Mark Carney, who will leave his position vacant next year, when he will resign as Governor of the Bank of England, noted that his successor will supervise a regulator more inclined to review existing rules than to set up new ones.
In his letter, he also said that the Financial Stability Board (FSB), which has conducted a series of banking and financial reforms after the 2007-2009 crisis, will focus on the current rules rather than designing new ones.
“As the work of the FSB, which aims to fill the fault lines that caused the financial crisis, is nearing its end, the latter will focus more (..) on the implementation and rigorous evaluation of the effects. reforms approved by the G20,” said Mark Carney.
The cryptocurrencies market has just started to recover today
Today, the majority of the crypto coins turned green after a tough period characterized by massive losses for all the cryptocurrencies.
Even more, now that the cryptocurrencies regulations requests have been rejected by the Financial Stability Board for the G20 summit, the cryptocurrencies market feels relieved of any pressure for the next period and will most probably continue the growing trending it started today.