July 16, 2018 / 8:51 AM / 4 months ago

Global regulators set out monitoring system for crypto-assets

FILE PHOTO: Representations of the Ripple, Bitcoin, Etherum and Litecoin virtual currencies are seen on a PC motherboard in this illustration picture, February 13, 2018. REUTERS/Dado Ruvic/File Photo

LONDON (Reuters) - Global regulators have published a framework for "vigilantly" monitoring risks from crypto-assets like bitcoin BTC=BTSP and ether, even though they don't pose a major risk to financial stability for now.

The Financial Stability Board (FSB), which coordinates financial regulation for the Group of 20 Economies (G20), said the framework focuses on how risks from crypto-asset markets could spread to other parts of the financial system.

“Monitoring the size and growth of crypto-asset markets is critical to understanding the potential size of wealth effects, should valuations fall,” the FSB said in a statement on Monday.

“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.”

Reporting by Huw Jones; Editing by Matthew Mpoke Bigg

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