FSB Urges Global Standards for Assessing Risks Linked to Cryptoassets

There is a need to develop global standards for assessing risks associated with cryptoassets. In a new report, the Financial Stability Board (FSB) of the G20 urged the G20 to set global standards for such assessments.

The document outlines threats to the stability of the entire ecosystem across market segments. Among them are risks arising from certain stablecoins, from the rapid adoption of DeFi protocols, and from the brisk involvement of traditional financial institutions in the space.

The FSB warned of a lack of transparent, consistent and reliable data on cryptoasset markets and their links to the core financial system.

In particular, indicators are fragmentary for the share of households investing in digital assets, the scale of fraud, the amount of cryptocurrency held by the banking sector, and the number and volume of crypto transactions in the payments industry.

Regarding DeFi protocols, experts flagged the lack of clear data on the use of leverage, the number of dapps and the share of retail investors.

Experts noted difficulties in identifying the individuals behind crypto-transactions.

Such gaps hinder the identification and quantitative assessment of risks, experts warned.

Earlier in October 2021, the FSB noted gaps in the regulation of stablecoins.

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