Banks and investment firms are investing, trading or market-making in crypto-asset markets or their derivatives in more than a half-dozen jurisdictions around the world, posing potential risks to the world economy, the Financial Stability Board said.
While traded volumes and open interest of Bitcoin futures are low, the extent of firms’ investments in crypto-assets isn’t clear, putting the onus on national regulators to devise data to track growth in these holdings, the global authority’s report said.
“Should the use of crypto-assets continue to evolve, it could have implications for financial stability,” the report released last week said. “These implications may include confidence effects and reputational risks to financial institutions and their regulators.”
Banks’ investments in crypto-assets pose potential risks that aren’t being tracked, FSB says
15 October 2018 9:40pm