FSB Addresses Concerns About Cryptocurrencies, Says They Are Not a Threat
The FSB (Financial Stability Board) made a statement on their website on the 16th of July that the international financial system is not affected negatively by cryptocurrencies.
The announcement addressed concerns regarding cryptocurrencies, explaining the actions taken by the Finance Ministers of the Group of Twenty and the governors of the Central about the new trade.
The Financial Stability Board declared that they will be joining forces with the CPMI (Committee on Payments and Market Infrastructures) to keep an eye on the virtual currency market and its influence on the international finances.
Despite announcing that cryptocurrencies don’t have adverse effects on the international financial system, the FSB still argue that they must be observed attentively, especially the channels of transmission in the virtual currency market. The purpose of the observation is more than a precaution; it’s also to assess the development of the market in order to determine the results it poses on the financial level of the cryptocurrency class.
When the cryptocurrencies first made an appearance, it wasn’t taken too seriously around the globe but since its dramatic growth in 2017, the world has become wary of it. Since then, the FSB has been working on placing protocols to control the virtual currency market.
The biggest concern for most governments are regarding virtual currency tax evasion; which is why the IRS (Internal Revenue Service) in the US has launched a global alliance to fight tax crimes and the European Union has introduced many laws in order to control cryptocurrency.