The FSB or Financial Stability Board has released a report to the Central Bank Governors and G20 Finance Ministers regarding the work of the FSB in monitoring the markets for crypto assets. As an international agency, the FSB is responsible for overseeing and preparing recommendations in regards to the global financial system. Financial stability is promoted internationally with the coordination of the standard-setting bodies and the national finance authorities. The purpose is the development of supervisory and regulatory financial sector policies. The announcement stated the FSB is working in collaboration with the CPMI or the Committee on Payments and Market Infrastructures. Their purpose is the development of a framework to be used by the agency to oversee the markets for crypto assets. According to the FSB, at the current stage there is no material risk presented by the crypto assets to global financial stability. In-depth monitoring is necessary because the market is developing rapidly. The framework consists of the metrics regarding the growth and the size of the crypto market in addition to the pricing, trading volumes, margining and clearing for the crypto assets. The FSB believes these metrics are critical for recognizing the possible size of the wealth in the event the case valuations were to fail.
A description of the work performed by the standard-setting bodies was included in the report. The report states CPMI has completed a considerable amount of work for the blockchain application technology. The IOSCO or The International Organization of Securities Commissions is responsible for establishing an ICO or initial coin offering Consultation Network for the review of the issues and experiences concerning the ICO market. The indirect and direct exposure of the banks to the digital assets is being examined by the BCBS or The Basel Committee on Banking Supervision. The IMF or the International Monetary Fund issued a report in May stating there are no apparent risks to financial stability due to cryptocurrency. International cooperation regarding regulation was promoted by the agency in the Global Financial Stability Report. The report stated appropriate safeguards were necessary to prevent cryptocurrencies from becoming a widespread risk.