Global regulators to assess if more crypto safeguards needed

Source: Reuters

Global regulators to assess if more crypto safeguards needed

Reuters
November 28, 2023 2:44 PM EST Updated an hour ago

LONDON, Nov 28 (Reuters) - More measures may be needed to stop blow-ups at complex crypto firms like FTX from destabilising the wider financial system, the global Financial Stability Board (FSB) said on Tuesday.

The FSB, which groups regulators, central banks and treasury officials from the G20 economies, said turmoil in crypto markets last year when FTX collapsed highlighted how "multifunction" crypto firms, that combine trading and other activities, can exacerbate vulnerabilities.

The vulnerabilities are similar to those found in traditional finance, including leverage, liquidity mismatches, technology and operational vulnerabilities, the FSB said in a report.

"These vulnerabilities are further amplified by a lack of effective controls and operational transparency, poor or no disclosures, and conflicts of interest," it said.

Evidence suggests that the threat to wider financial stability and the economy is limited at present, it added.

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Read more: https://www.reuters.com/technology/global-regulators-assess-if-more-crypto-safeguards-needed-2023-11-28/

Alternate no-paywall link: https://news.yahoo.com/tech/global-regulators-assess-more-crypto-094946262.html