The Financial Stability Board (FSB) under the G20 group will provide recommendations on the regulation of cryptocurrencies in October.
According to the statement shared by the organization:
“Crypto assets, including so-called stablecoins, are rapidly evolving. The recent turmoil in the digital currency markets highlights their inherent volatility, structural vulnerabilities, and the challenge of increasing interconnectedness with the traditional financial system.”
The FSB has noted the losses of crypto investors threaten to “infect” some traditional financial markets, such as the sphere of short-term lending.
According to the experts, crypto assets “should be subject to effective regulation and control in proportion to the threats they pose, both at the internal and external levels.”
The FSB believes existing general rules and regulations for financial markets apply to digital assets.