This report is an important read. The Financial Stability Board (FSB) published this week its assessment of the risks of crypto assets on financial

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This report is an important read. The Financial Stability Board (FSB) published this week its assessment of the risks of crypto assets on financial stability. The FSB is a globally influential body, aiding in the setting of global regulatory standards. In a comprehensive report they outline the potential for regulatory gaps, fragmentation or arbitrage of crypto assets. Setting out a number of considerations and areas for on-going vigilance including.
1. The potential for increasing bank sector involvements in the crypto-asset eco system.
2. Acceleration in the adoption of crypto assets for payments.
The growth, role and risk associated with crypto asset trading platforms.
3. A rapid growth of DeFi,‚ in the absence of clearly identifiable intermediaries or parties responsible‚ for governance, challenges core‚ financial‚ (stability) regulatory‚ and supervisory‚ disciplines and doctrines.
4. Differing regulatory approaches could lead to‚ regulatory arbitrage, thus increasing potential systemic risks.‚ 

Announcements from various governments have set out plans to regulate crypto assets, in response to the concerns raised about financial stability. One can expect that crypto assets are here to stay, offering innovative mechanisms for financial transactions.

Dean Armstrong QC Ted Dziekanowski

#cryptocurrency‚ #cryptoregulation‚ #cryptoassets‚ #crypto‚ #nft‚ #cyberlaw‚ #regulations‚ #cybersecurity‚ #cyberriskmanagement
#compliance‚ #regulatorycompliance‚ #regulatoryoversight‚ #regulation‚ #cbdc‚ #aml‚ #kyc‚ #sec

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