“Monitoring the size and growth of crypto-asset markets is critical to understanding the potential size of wealth effects, should valuations fall.”They then went on to say:
“The use of leverage, and financial institution exposures to crypto-asset markets are important metrics of transmission of crypto-asset risks to the broader financial system.”The board published their findings to the G20’s finance ministers and heads of banks who will meet on the 21-22 July in Buenos Aires, Argentina. Considering there is a rare amount of trustworthy information on the banks’ holdings of crypto assets, the Basel Committee on Banking Supervision is taking control of an ‘initial stocktake’ of the banks direct and indirect exposure to potential losses. This is following the march compromise by members of G20, some of which wanted closer supervision, while others would have preferred more freedom in the matter. The framework includes the numbers of trading, pricing, margining and clearing for devices that linked to crypto such as the Bitcoin futures presented by the CME Group back in December last year. The board said that there were regulatory issues surrounding cryptocurrency include money laundering and the integrity of the market. Mark Carney, the Governor to the Bank of England, has suggested that the threat of virtual currencies is small because of the low amount that are traded when comparing it to the overall financial system.