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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

BTC/USD freefalls from $7,300, breakdown to $6,500 still looms

Bitcoin price rejection from levels around $7,300 failed to find support at $7,000 and $6,800 respectively. The price is doddering at $6,773 amid a building bearish momentum. However, the RSI and the MACD have remained positive.

More Bitcoin News

XRP/USD bulls in control as they look to conquer $0.1876 resistance line

XRP/USD went up from $0.1785 to $0.1794 in the early hours of Friday. In the process, the buyers managed to stay in control for the fifth straight day as they broke above the bullish pennant structure. 

More Ripple News

Ethereum Price Prediction: ETH/USD focus shifts $160 despite resistance at $150

Ethereum is slightly in the green on Friday following a relatively bullish week. It calls for celebration among the bulls after the price action achieved the short term goal of stepping above $140 resistance.

More Ethereum News

EOS Price Analysis: EOS/USD remains bullish despite charting death cross pattern

EOS/USD has gone up from $2.295 to $2.318 in the early hours of Friday as it continues to consolidate itself within the pennant structure. In the process, the buyers managed to chart a hattrick of bullish days ...

More EOS News

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: Coronavirus will either kill Bitcoin or make it stronger

Bitcoin is about to finish the second positive week in a row. The first digital coin has recovered from $5,680 and came close to psychological $7,000 during the week.

Read the weekly forecast

BTC

ETH

XRP