financial stability

FSB Report: The Current Impact of Tokenization on Global Financial Stability is Limited, but Future Risks Should Not Be Ignored

ChainCatcher news, according to Cryptonews, the Financial Stability Board (FSB) has released a report indicating that while the current impact of tokenization on global financial stability is limited, potential risks may increase as its application expands. The report emphasizes that the risks of tokenization to global financial stability are currently limited, primarily due to its small scale and early adoption stage. Most tokenized assets remain confined to pilot projects and niche markets, with low integration into the broader financial system.The report also points out several factors hindering the integration of tokenization into mainstream finance, including technological challenges, a lack of cross-platform standardization, and deficiencies in existing regulatory frameworks. The FSB believes that these obstacles help to some extent in controlling related risks, as the broader financial markets have not yet faced significant risks.Despite the current limited impact, the FSB still highlights the potential risks that may arise from the increased application of tokenization. As these markets expand, challenges such as legal uncertainties regarding asset ownership and cross-border transaction management may become more pronounced. In particular, as the tokenization market deepens its ties with traditional finance, these issues could create greater vulnerabilities.

Central Bank Financial Stability Bureau: The rectification work in areas such as virtual currency trading has been basically completed, and efforts to resolutely curb domestic virtual currency trading speculation are in place

ChainCatcher News, the Financial Stability Bureau of the People's Bank of China published a column article titled "Effectively Preventing and Resolving Financial Risks, Firmly Upholding the Bottom Line of Preventing Systemic Risks." The article points out that under the strong leadership of the Party Central Committee and the State Council, the People's Bank of China closely focuses on three tasks: serving the real economy, preventing and controlling financial risks, and deepening financial reform. Following the basic principles of "stabilizing the overall situation, coordinating comprehensively, implementing differentiated policies, and precisely defusing risks," it resolutely fights the tough battle against major financial risks, improves the system and mechanism for financial stability work, and orderly addresses a number of prominent risk points that are significant, urgent, and systemic, effectively safeguarding the national economic and financial security and the overall stability of the financial system.In addition, the article notes that a comprehensive cleanup and rectification of the financial order has achieved good results in the special rectification of internet financial risks. All P2P lending institutions have ceased operations, and the rectification work in areas such as internet asset management, equity crowdfunding, internet insurance, virtual currency trading, and internet foreign exchange trading has been basically completed. The article emphasizes the deepening of risk rectification for local financial asset exchanges, "pseudo-gold exchanges," and third-party wealth management companies, as well as a severe crackdown on illegal fundraising and a firm curb on domestic virtual currency trading speculation. Efforts to increase the investigation and handling of money laundering cases continue to be intensified.
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