- 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.
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