The Financial Stability Board (FSB) said that the rapidly evolving crypto market could be a threat to global financial stability.
The FSB, an international organization that monitors the global financial system, in a report published Wednesday examined the vulnerabilities of products and services such as Bitcoin, stablecoins and decentralized finance, and crypto-asset trading platforms. The institution claimed that although the market is relatively small, the risks it poses to financial stability may increase rapidly. Funded by the Bank for International Settlements (BIS), the FSB is chaired by De Nederlandsche Bank President Klaas Knot.
The report came after regulators in countries such as the USA and the UK made similar statements. As it is known, crypto assets have experienced a huge growth in recent years. In the 5 years to October 2021, the market capitalization of crypto assets has increased by nearly 200%, reaching as high as $2.7 trillion. Currently, it is at the level of approximately 2 trillion dollars according to CoinMarketCap data.
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