The Financial Stability Board (FSB), a global financial authority funded by the Bank for International Settlements, has released a new report on financial stability risks associated with cryptocurrencies.
The 30-page research report, released Wednesday, details a range of financial risks associated with various types of cryptocurrencies and the industry, including private digital assets such as Bitcoin, stablecoins such as Tether (USDT) and decentralized finance. (DeFi).
The report cites oft-mentioned risks, such as the potential failure of certain stablecoins, which pose a significant threat to the stability of the entire crypto ecosystem due to their dominance in trading volume. The FSB also pointed to the risks associated with the rapid adoption of DeFi, and the related lack of clearly identifiable intermediaries, the potential increased involvement of banks, etc.
The FSB also pointed to the risks posed by data gaps in the crypto industry, warning that there is a "lack of transparent, consistent and trusted data on the cryptoasset market and its linkages to the core financial system."
“These data gaps make it difficult to assess the full extent of the use of cryptoassets in the financial system,” the FSB wrote, adding that these gaps significantly impede the ability to identify and quantify risks arising from the crypto industry.
“Data available on public blockchains is designed to be anonymous,” the agency wrote, making it “difficult to determine the identity of users engaging in cryptoasset activity.”
The FSB lists a number of data gaps, including the proportion of households invested in crypto assets, the amount of crypto fraud, the exposure of banks, owners, the number and value of transactions in the payment industry and other industries. "Survey-based metrics are not customizable and are updated infrequently or irregularly," the group noted.
The FSB cited data gaps related to DeFi, such as the unknown share of retail versus institutional participation, the number of decentralized applications on the blockchain, metrics for measuring leverage, and more.
A spokesperson for the FSB told Cointelegraph: “The borderless nature of cryptoassets makes it difficult to get a comprehensive picture of these markets. As a result, data for cryptoassets reported by different data sources can vary widely.” According to the agency, the cryptomarket’s The data gaps were mainly due to "lack of standardized reporting requirements and regulation, or compliance with regulations."
A representative of the FSB told Cointelegraph that they do not have any information on developing a globally standardized crypto reporting tool.
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