The Financial Stability Board (FSB) has presented a report to the G20 Finance Ministers and Central Bank Governors on the FSB’s work monitoring crypto-asset markets, according to an announcement published July 16.

The FSB in an international agency which oversees and prepares recommendations regarding the global financial system. The agency also promotes international financial stability by coordinating national financial authorities and standard-setting bodies to develop regulatory and supervisory financial sector policies.

According to the announcement, the FSB has been working in collaboration with the Committee on Payments and Market Infrastructures (CPMI) to develop a framework the agency will use to oversee crypto-asset markets.

The FSB states that crypto-assets do not present a material risk to global financial stability at their current stage, though it sees the necessity for in-depth monitoring due to the rapid development of the market. The framework includes metrics on the size and growth of crypto markets, as well as trading volumes, pricing, clearing, and margining for crypto-asset derivatives. According to the FSB, these metrics are crucial for understanding the potential size of wealth effects in case valuations fall.

The report also includes a description of the work undertaken by standard-setting bodies. CPMI has reportedly carried out considerable work on the application of blockchain technology, while The International Organization of Securities Commissions (IOSCO) has established an initial coin offering (ICO) Consultation Network to review experiences and issues in the ICO market. The Basel Committee on Banking Supervision (BCBS) is examining the extent of banks’ direct and indirect exposure to digital assets.

In May, the International Monetary Fund (IMF) said in a report that cryptocurrencies “do not appear to pose risks to financial stability.” In its Global Financial Stability Report, the agency promoted international cooperation on regulation, citing that “...[cryptocurrencies] could [pose a risk] should their use become more widespread without the appropriate safeguards.”