G20’s international watchdog: regulators need to improve their risk assessment strategies regarding financial activity in the crypto space

G20’s international watchdog, the Switzerland-based Financial Stability Board (FSB), said in its latest report that regulators need to improve their risk assessment strategies regarding financial activity in the crypto space, according to a report by Reuters on May 31.

The report noted that one potential risk assessment metric regulators could look at is banks’ and other financial entities’ degree of exposure to cryptocurrency. The report also added that the FSB does not currently believe that crypto poses “a material stability risk” to the financial sector.

As per the report, existing crypto regulations are somewhat weak, and the fast rate of technological innovation may leave the sector with even more areas of questionable regulation. Crypto assets currently can reportedly fall outside regulators’ jurisdiction, due in part to inconsistent standards between countries.

China, for instance, has reportedly taken a “near-total ban” approach to cryptocurrency exchanges, while Japan is attempting to keep cryptocurrency exchanges legal with proper licensure.

Also read: President of the Chamber of Deputies of Brazil has ordered to establish a commission to consider crypto regulation in the country

Source: https://cointelegraph.com/news/g20-international-watchdog-says-regulators-need-better-crypto-risk-assessments