G20’s FSB Believes Crypto May Develop into a Global Threat
Earlier in October, a report by the IMF detailed the risk cryptocurrency may have to the global economy. Now, the G20 FSB added to an evaluation it made previously in a new report.
Their analyzation discusses the idea that even though crypto does not currently contribute to a tangible risk in markets around the world, they might later on as they progress.
In the report of possible issues that can arise in the future, damage to reputations and security in regards to financial entities and regulators can be one of the impending risks. In addition, they included problems if crypto becomes a primary payment method, issues with clearance and market cap.
What Can the Industry Do?
The board recommends keeping a lookout against potential developments in the sector as a possible solution to the aforementioned issues, primarily in regards to anti-criminal activities. Steps toward strengthening protocols, anti-fraud and laundering initiatives, and anti-terrorism measures.
The FSB said that these steps can help balance the good and the bad between innovation and consumer protection.
The organization is made up of over 60 institutions, including international organizations, central banking systems, and more. It believes that these major entities should combine to develop a pathway for the sector worldwide.