Financial Stability Board urges regulators for more vigilance in crypto sphere

According to the latest report, Financial Stability Board (FSB); G20’s international monitor, in its recently released report stated that regulators must have to upgrade their risk evaluation strategies regarding financial dealings in the crypto industry.

The report stated that FSB does not consider cryptocurrency to be posing any ‘material stability risk’ to the financial world. Moreover, current regulations regarding the digital currency are irregular, and the fast pace of technological innovation can create a vacuum, thereby, causing more uncertainty regarding the regulations.

Due to varying standards between states regarding the digital assets, digital currency assets do not fall under the jurisdiction of regulators. To compound the problem further, the rate of technological innovation is too fast for regulations to keep pace with.

As China’s attitude towards cryptocurrency exchanges is basically near- total-ban, whereas, Japan is making efforts to legalize the digital exchanges with proper licensing.

Reportedly, the G20 summit in June will be hosted by Japan in Osaka and discussions regarding the crypto regulations are likely to take place.