Japan, one of the earliest countries to legalize cryptocurrencies, had sought a coordinated effort to plug loop holes that arise due to a difference in preference given to cryptocurrrencies by various countries. According to Japan, the loopholes are being misused by money launderers and other anti-social elements such as drug traffickers, etc.
The concerns of cryptocurrrency market participants started fading after it was revealed that the Bank of England Governor Mark Carney, chair of the Financial Stability Board, has recently published a letter to participating members (central bankers and finance ministers) of the FSB, stating that cryptocurrencies is not a pressing issue.
In his letter Carney had stated
“The FSB’s initial assessment is that crypto-assets do not pose risks to global financial stability at this time.”
The FSB chairman has also underlined the fact that cryptocurrencies made up only 1% of global economic output even during their recent peak in December 2017. Furthermore, Carney has also suggested framing new set of rules to suit cryptocurrencies, instead of adapting the existing ones that govern digital currencies.
Carney stated
“As its work to fix the fault lines that caused the financial crisis draws to a close, the FSB is increasingly pivoting away from design of new policy initiatives towards dynamic implementation and rigorous evaluation of the effects of the agreed G20 reforms.”
Carney also announced that the FSB will undergo a total revamp so that the regulator is totally “fit for purpose” when validating and amending existing financial regulations. Following the announcement, Bitcoin (BTC) has surged by about $1,000 to trade at $8,200 levels, while Ethereum (ETH) has gained nearly $100 to trade at $530 levels.