# Crypto assets currently do not pose threat to financial stability, says FSB

By Shampa Mani

Canonical URL: https://www.tokenpost.com/news/insights/536
Published: 2018-10-11T07:24:51.000Z
Updated: 2018-10-11T08:05:04.000Z
Section: Insights & Views

> The Financial Stability Board (FSB), an international body monitoring the global financial system, has published a new report that highlights the analysis behind its proactive assessment of the potential implications …

The [Financial Stability Board](<http://www.fsb.org/>) (FSB), an international body monitoring the global financial system, has published a new report that highlights the analysis behind its proactive assessment of the potential implications of crypto-assets for financial stability.

The report, “[Crypto-asset markets: Potential channels for future financial stability implications](<http://www.fsb.org/wp-content/uploads/P101018.pdf>),” follows the summary of the work of the FSB and standard-setting bodies on crypto-assets [published in July](<https://www.econotimes.com/Financial-Stability-Board-publishes-framework-to-monitor-crypto-assets-1403726>).

The latest report includes an assessment of the primary risks associated with crypto-assets and their markets, such as low liquidity, the use of leverage, market risks from volatility, and operational risks. On the basis of these features, the FSB said that “crypto-assets lack the key attributes of sovereign currencies and do not serve as a common means of payment, a stable store of value, or a mainstream unit of account.”

“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,” it added.

The FSB said that crypto-assets could have implications for financial stability in the future if their use continues to evolve.

FSB uses its crypto-asset monitoring framework to assess possible financial stability transmission channels [#crypto](<https://twitter.com/hashtag/crypto?src=hash&ref_src=twsrc%5Etfw>) [https://t.co/jihvohH4tr](<https://t.co/jihvohH4tr>) [pic.twitter.com/xmv0Y1lGiY](<https://t.co/xmv0Y1lGiY>)

— The FSB (@FinStbBoard) [October 10, 2018](<https://twitter.com/FinStbBoard/status/1049986821009141760?ref_src=twsrc%5Etfw>)

Crypto-assets also raise a number of policy issues, the FSB said, such as the need for consumer and investor protection, AML/CFT regulations, regulatory measures to prevent tax evasion, and more.

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## Links in this article

- [Financial Stability Board](http://www.fsb.org/)
- [Crypto-asset markets: Potential channels for future financial stability implications](http://www.fsb.org/wp-content/uploads/P101018.pdf)
- [published in July](https://www.econotimes.com/Financial-Stability-Board-publishes-framework-to-monitor-crypto-assets-1403726)
- [#crypto](https://twitter.com/hashtag/crypto?src=hash&ref_src=twsrc%5Etfw)
- [https://t.co/jihvohH4tr](https://t.co/jihvohH4tr)
- [pic.twitter.com/xmv0Y1lGiY](https://t.co/xmv0Y1lGiY)
- [October 10, 2018](https://twitter.com/FinStbBoard/status/1049986821009141760?ref_src=twsrc%5Etfw)
- [Donate](https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=GD9D8CPW8HFA2)