The Financial Stability Board (FSB) is set to release its guidelines for the adoption of cryptocurrency by October.
The agency said that this has become necessary due to the recent downturn of events in the crypto market.
The agency which termed the market as speculative said that it was moving from just monitoring the Industry to proposing guidelines.
According to the FSB, while it had earlier observed that cryptocurrency does not pose a systemic risk, the recent turmoil in the market of crypto has exposed the volatility, structural vulnerabilities, and increasing links to the wider financial
system.
“The failure of a market player, in addition to imposing potentially large losses on investors and threatening market confidence arising from crystallization of conduct risks, can also quickly transmit risks to other parts of the crypto-asset ecosystem,” “The FSB will report to the G20 Finance Ministers and Central Bank Governors in October on regulatory and supervisory approaches to stablecoins and other crypto-assets,” the FSB said.
” FSB members are committed to using the enforcement powers within the legal framework in their jurisdiction to promote compliance and act against violations,” the FSB said in a statement.
