Market value by the end of 2021, 2.5 trillion, an increase of 3.5 times dollars and global ‘crypto-assets’ market, in larger sizes for a while, especially due to the serious problem of ‘vulnerabilities’ under the spotlight. While the heavy shock of the 2008 global financial crisis was shaking the western economies, it was decided to transform the Financial Stability Forum (FSF) into the Financial Stability Board (FSB), with the decision of the G20 leaders who met in April 2009 at the request of the USA. On September 25, 2009, the founding agreement of the Financial Stability Board (FSB) was accepted in Pittsburg, also in the USA. Since then, the main task of the FSB, headquartered in Basel, Switzerland, has been to determine new rules regarding the global financial system and then to monitor whether the global markets are functioning properly according to these new rules.
The FSB, in its comprehensive ‘Crypto-Assets to Financial Stability Risk Assessment’ report, published on February 16 this year, stated that ‘crypto-asset markets are rapidly evolving and pose a serious threat to global financial stability due to their scale, structural weaknesses and increasing interconnectedness with the traditional financial system. He shared his assessment that they can reach the point. The report examines developments and related security vulnerabilities in three areas of crypto-asset markets: unsupported crypto assets (such as Bitcoin), stablecoins and decentralized finance (DeFi) and other platforms where crypto assets are traded. These three areas are intertwined in a complex and ever-evolving ecosystem and require holistic consideration when assessing risks to global financial stability.
The need for a report on ‘risks that will threaten financial stability’ for the global crypto asset market, which has reached a size of $ 2.5 trillion, has emerged as a necessity, especially in 2021, with the intensification of significant institutional participation in the crypto asset markets, both on the basis of investors and service providers. output. Because in a world dominated by individual investment, there is no comprehensive financial stability risk. However, at the scales of the crypto-assets world, if the growth trend in institutional transactions continues at this pace, if cryptoassets continue to be interconnected with the funds of institutionalized financial institutions, this could have serious implications for global financial stability. Also, given that some of the platforms in the decentralized finance (DeFi) space operate outside the legal and regulatory boundaries of the jurisdiction, in the global financial system potential for concentration of risks increasing day by day and transparency in crypto-asset activities The lack of it increases the danger completely.
Here, in the light of these reasons that we have listed from the beginning, FSB coming In October, the G20 finance and treasury ministers and central bank governors crypto assets and especially for ‘stablecoins’ to be implemented with the most urgency with the new ‘global rules’ required will present its report. Lael Brainard, Vice Chairman of the US Federal Reserve (FED), also stated that the cryptocurrency market needs robust regulation before it grows to such an extent that it poses financial stability risks. The new ‘global rules’, the details of which will be revealed in October, will bring a serious regulation to the crypto money market, which has shown serious fluctuations, especially in the last two years, causing heavy losses and grievances. Undoubtedly, starting from the second half of this month, both international economic and financial news agencies and the actors of this market will try to reach the details of the new rules. When the details are clear, we will make an evaluation.