Proactive checks on cryptocurrency risks needed: Report

LONDON – Regulators need to step up risk assessments of the cryptocurrency sector as current rules are patchy, and quick technological change may lead to gaps in policies on digital money, the global financial stability watchdog said.

They should work to foresee risks in the emerging industry that could impact financial stability, the Financial Stability Board (FSB) said on Friday in a report for G20 finance ministers and central bank governors.

An assessment of banks’ and other financial firms’ exposure to digital money was one potential tool, the FSB said, adding that digital coins did not currently present a material stability risk.