FSB Chair Warns of Potential Systemic Risks in Cryptocurrency Markets

According to PANews, Klaas Knot, the outgoing chairman of the Financial Stability Board (FSB), has issued a stern warning about the cryptocurrency market, suggesting it may be nearing a 'critical point' that could pose systemic risks to the global financial system. Knot highlighted the significant holdings of U.S. Treasury bonds by stablecoin issuers, emphasizing the need for close monitoring of this sector. He noted that the barriers for retail investors have significantly lowered, particularly following the introduction of cryptocurrency ETFs, which has strengthened ties with the traditional financial system. Knot underscored the necessity for proactive regulation, stating, 'The crypto ecosystem will continue to evolve, and our regulatory framework must do the same.'