bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

helpersCheckIsPostiesArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

moreOnThisArticles

urlAlias

commentCount

authorLocations

authors

paywallTypes

corrections

sponsorType

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

socialHeadline

headline

flag

firstTopic

glossary

flattenTypeIds

publishedDate

additionalInfoBoxes

images

image

relatedLinks

relatedNewsletters

__typename

createdDate

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

Bloomberg

Reuters

The rapid evolution of crypto-assets such as Bitcoin may one day make them a threat to the financial system, Mark Carney, chairman of the Financial Stability Board, said in a letter to G20 finance leaders.
“Wider use and greater interconnectedness could, if it occurred without material improvements in conduct, market integrity and cyber resilience, pose financial stability risks through confidence effects,” Carney wrote.
His letter, published on Sunday, was circulated for a meeting of G20 finance ministers and central bank governors in Buenos Aires.
Carney, who is also governor of the Bank of England, called earlier this month for more regulation to bring the era of cryptocurrency “anarchy” to an end.
In his G20 letter, Carney said the FSB would look for metrics and gaps in data to help monitor the growth of crypto-assets and identify emerging threats to financial stability.

For now, crypto-assets don’t pose risks to financial stability, partly because they are still small relative to the financial system.
Even at their recent peak, their combined global market value was less than 1 per cent of global economic output, the FSB said. In addition, the assets aren’t substitutes for currency and aren’t much used for financial transactions, limiting their links to the rest of the financial system.
Carney’s letter also said that by November, regulators will publish an assessment of post-crisis regulations on the use of clearing houses in the global swaps market.
The review will consider “whether there are unintended consequences, in particular relating to the costs and availability of clearing.”
Bitcoin to top US$29,000 by year’s end while ethereum may more than triple, survey finds
The Financial Stability Board (FSB) coordinates financial regulation for the G20 economies. It resisted calls from some G20 members to regulate cryptocurrencies like bitcoin.
Interest in cryptocurrencies surged last year as prices rocketed only to tumble in recent months, triggering warnings from regulators.
But in a sign of too little consensus for radical action, the FSB said more international coordination was needed to plug data gaps in monitoring the rapidly evolving but still tiny sector.
Carney, who stands down next year when his term as governor of the Bank of England ends, signalled that whoever succeeds him would be overseeing a more open watchdog focused on reviewing rules instead of pushing through new standards.
“As its work to fix the fault lines that caused the financial crisis draws to a close, the FSB is increasingly pivoting away from design of new policy initiatives towards dynamic implementation and rigorous evaluation of the effects of the agreed G20 reforms,” Carney said.

US President Donald Trump ordered American regulators last year to scale back on post-crisis banking and derivatives reforms to encourage more lending to the economy.
The move led to fears among regulators around the world that the United States, where lawmakers have long been lukewarm towards global regulatory bodies, would turn its back on international cooperation and fragment markets.
The FSB will also report this year on whether reforms to inject more transparency into derivatives markets have created the right incentives to clear trades.
The watchdog will study the impact of existing rules on financing small companies and report back next year on whether changes are needed.


Trump is diving into crypto headfirst. Has China missed the boat?

Bitcoin, ether stagger as US stock sell-off weighs on cryptocurrencies

Singapore Exchange to list bitcoin futures, join global shift in expanding crypto derivatives

Trump wants the US to be the world’s crypto capital. Will China take notice?

Bitcoin

Bitcoin and crypto assets may one day threaten financial system, says report

Bank of England governor Mark Carney, who is also chairman of the Financial Stability Board, in a file photo on March 2, 2018, issued a report saying bitcoin and other crypto assets did not pose a threat to the financial system for now but may one day do so. Photo: Bloomberg

FILE - In this April 3, 2013 photo, Mike Caldwell, a 35-year-old software engineer, holds a 25 Bitcoin token at his shop in Sandy, Utah. Bitcoin is an online currency that allows people to make one-to-one transactions, buy goods and services and exchange money across borders without involving banks, credit card issuers or other third parties. Thailand’s cabinet has agreed to draft a law to regulate cryptocurrency trading, seeking to tax the largely unregulated market. Government spokesman Nathporn Chatusripitak said Tuesday the Ministry of Finance also proposed the new regulations to help prevent use of digital currencies in money laundering and fraud. (AP Photo/Rick Bowmer, File)

The symbols of Bitcoin and Ethereum cryptocurrencies sit displayed on a screen during the Crypto Investor Show in London, U.K., on Saturday, March 10, 2018. The meeting is the largest crypto and blockchain event for investors in the U.K. Photographer: Mary Turner/Bloomberg