G20 regulators want to monitor crypto risks, Bitcoin still on bulish territory


  • FSB created a special framework to monitor crypto risks.
  • Critical resistance at $6,761 stopped the bullish run.


Global regulatory authorities have released a framework for monitoring risks related to digital assets, including Bitcoin, Ethereum. XRP and others even if they don't threaten financial stability at the current stage.

Regulators have developed special metrics to estimate the potential threats, including the size of the crypto market, a number of crypto-based financial products and impact produced by financial institutions.

The Financial Stability Board of G20 (FSB) retreated its view that cryptocurrencies pose no threat to the financial system, but the framework should help to spot any financial stability risks at early stages, until it is too late.

“Monitoring the size and growth of crypto-asset markets is critical to understanding the potential size of wealth effects, should valuations fall. The use of leverage, and financial institution exposures to crypto-asset markets are important metrics of transmission of crypto-asset risks to the broader financial system,” the FSB commented in a statement on Monday.

However, FSB added that the data can be fragmented and opaque as the market is still at its infancy, that's why it is necessary to access the efficiency of the framework at a later stage.
"Previous FSB analyses of crypto-asset markets, including initial coin offerings (ICOs), highlighted challenges such as rapid developments in these markets, lack of transparency including around the identity and location of token issuers and the governing law for white papers, and data gaps. The fragmented nature of crypto-asset markets is another complication."

Bitcoin, the digital currency No. 1 is changing hands circa $6,700, off Monday's high registered at $6,750. The week kicked off with a strong rally, potentially triggered by the news that  BlackRock investment fund was exploring crypto opportunities. BTC gained 5.7% on a daily basis, but further upside may be limited by 23.6% Fibo retracement at $6,761.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin price update: BTC/USD struggling with descending trendline resistance for 3 straight months

Bitcoin price is back above $10,000 after a brief visit to $9,600 on Thursday. The failed attempt to sustain gains above $10,400 last week had demoralized the bulls. For a few days, Bitcoin buyers had just enough energy to defend $10,000 while hoping for a breakthrough to the upside. 

More Bitcoin News

Ethereum (ETH) price analysis: ETH/USD bulls knock at $200.00

The second largest cryptocurrency with the current market capitalization of $23.4 billion hit $224.40 during early Asian hours. The coin has retreated to $218.50 by the time of writing amid strongly bearish short-term sentiments. 

More Ethereum News

IOTA Foundation develops atonomous and decentralized marketplace

IOTA is working on the world's first industry marketplace. IOT/USD stays range-bound, vulnerable to the further downside correction.

More IOTA News

Ripple's XRP technical analysis: XRP/USD big retest on the cards

Ripple's XRP price on Friday is trading firmly in the red by some 3% in the session. XRP/USD bears are forcing the price to give back the strong gains seen earlier in the week.

More Ripple News

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: Rangebound trading and September blues come upon the crypto market

Bitcoin finishes the week with marginal losses. The first digital currency recovered from the recent low of $9,886 but stayed in the red zone as of the end of the week.

Read the weekly forecast

BTC

ETH

XRP