- The BCBS is engaged in bringing policy and supervisory initiatives related to crypto assets.
- The supervisory body is monitoring various banking developments.
As cryptocurrency economy is prospering, major international regulators are now aiming at streamlining policies in many crypto-related areas like investor protection, market integrity, and anti-money laundering. The prospect of the regulators was summarized in a recent report by the Financial Stability Board (FSB) which will be presented on the upcoming G20 summit before finance ministers and central bank governors.
The report stated that the Basel Committee on Banking Supervision (BCBS) is engaged in bringing policy and supervisory initiatives related to crypto assets and is focused on strengthening regulation, supervision, and practices of banks around the world. The supervisory body is monitoring various banking developments on crypto and it is also clarifying the prudential treatments for banks exposed to digital assets. On the other hand, the Committee for Payments and Market Infrastructures (CPMI) is concentrating on innovations in blockchain-based payments, and clearing and settlement systems.
“Over the past several years, the CPMI has been closely monitoring implications of digital innovations, including digital currencies, tokenization, and distributed ledgers. To that end, the CPMI has been developing analytical reports and frameworks to aid central banks in their assessments, frequently partnering with other SSBs and central bank committees,” the report stated.
However, the International Organization of Securities Commissions (IOSCO) is concerned about the influence of cryptocurrencies on trading, custody, and clearing and settlement. The FSB also reported that cryptocurrency could be a threat to financial stability in a report last year.
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