G20 Financial Regulators to Review Existing Rules, Cryptocurrency Markets Revive on Positive Statements

With increasing number of crypto frauds getting reported, a large number of global financial institutions have been pressing the need to have a uniform framework to regulate cryptocurrencies worldwide and protect the investor’s interest. Recently, IMF chief Christine Lagarde proposed the idea of using blockchain to regulate cryptocurrencies and urged global institutions to come together and work on it.

As per the latest report from Reuters, the G20 watchdog that released a slew of reforms during the financial crisis is now working towards reviewing the existing rules as well as designing the new ones. The Financial Stability Board (FSB) that looks after the financial regulations for the Group of 20 Economies has recently expressed views against the need to regulate cryptocurrencies, as expressed by the G20 members.

Instead of jumping the guns and opting for any sort of radical action, the FSB said that more international coordination is required in order to plug the data while monitoring the rapidly evolving sector. The crypto market, however, is tiny in size as it contributes less than 1 percent of the global GDP but its unprecedented rise last year has drawn the attention of several financial institutions.

In a recent letter to finance ministers and G20 central bankers who are to meet today and tomorrow in  Buenos Aires, FSB chair Mark Carney writes: “The FSB’s initial assessment is that crypto-assets do not pose risks to global financial stability at this time.” Mr. Carney further added that “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.”

Mark Carney, who is set to step down from the post of governor of Bank of England with his term ending last year, has assured that anyone succeeding him will hold a more open approach focused on reviewing rules instead of making hurry to push the new ones.

Soon after the announcement by the FSB, some positivity has now been instilled in the crypto market thereby holding for the moment the continuous and fast fall in crypto valuations seen over the period of last week.

Bitcoin, which slipped below $8,000 mark, is now seen trading above $8,300 levels. On the hand, Ethereum too has gained by 5% while regaining the lost ground and is trading above $530 levels.