FSB’s Americas group discuss crypto assets
The Financial Stability Board‘s (FSB) Americas unit have been discussing the role played by crypto assets in international criminal activity, plus their overall impact on the global financial system.
Members of the FSB’s Regional Consultative Group for the Americas, at a meeting in Ascuncion, Paraguay late on Wednesday, discussed how financial technology (fintech) and regulatory technology (regtech) can play a role in combating international crime.
Money laundering and terrorism
Of primary concern to the group is improving measures to tackle money laundering and the financing of terrorism and talk inevitably turned to the use of crypto assets in such criminal activity.
“Money laundering and terrorist financing risks are a concern in certain areas of the FSB’s work, including its action plan to address the decline in correspondent banking relationships and its analysis of the potential financial stability implications of crypto-assets,” the group said in its press communique following the meeting.
Cryptos’ impact on financial stability
Crypto assets formed the topic of a broader discussion on financial stability, given the rapid growth in the market for cryptocurrencies and other digital assets. Attention was also directed to the growing involvement in the market of retail investors.
The FSB’s 2018 workplan on policy development will include monitoring the financial system to identify emerging risks, including those related to crypto-assets.
Financial Stability Board
The FSB is an international body, hosted and funded by the Bank for International Settlements (BIS) – often called the central banker’s central bank. Formed in 2009 as a successor to the Financial Stability Forum, the FSB’s board includes representatives from all the G20 economies and the European Commission and is currently chaired by Mark Carney, governor of the Bank of England.
The Regional Consultative Group for the Americas is one of six regional units. The aim of these regional groups is to bring together financial authorities from FSB member and non-member countries to discuss regional vulnerabilities affecting financial systems and initiatives to promote financial stability.