While the global cryptocurrency market has reached $4 trillion, the G20's risk oversight board, the FSB, has announced serious gaps in countries' regulations. The Financial Stability Board (FSB), established in the wake of the global financial crisis, said there were “significant gaps” in the regulations countries have put in place to address the rapid growth of cryptocurrencies. The FSB warned that these gaps could harm financial stability. In its assessment published today, the FSB acknowledged that some progress has been made in cryptocurrency regulation. However, it noted that international practice and existing rules are too fragmented, inconsistent, and inadequate to address the global nature of cryptocurrency markets. The FSB noted that the current risks in crypto markets are limited for now, but these risks increase as the market grows. FSB Secretary General John Schindler expressed his concerns: “Financial stability risks are currently limited, but they are increasing as the rise in Bitcoin and other cryptocurrencies has doubled the value of the global cryptocurrency market to $4 trillion in the last year. This is a significant result. These crypto assets can move across borders much more easily, if not more easily, than other financial assets.” Schindler finally said that as cryptocurrencies become increasingly linked to the traditional financial system and stablecoins become more widely used, close monitoring is needed. At this point, the FSB noted that one of the main concerns is that no country yet has comprehensive regulatory frameworks for stablecoins. While still a small market compared to Bitcoin and the cryptocurrency markets, the stablecoin market has grown by almost 75 percent in the past year, reaching $290 billion. “We can all make rules, but if there are parties that don't cooperate and don't help each other, it's going to be very difficult indeed because these assets don't recognize borders,” the FSB said, urging countries to cooperate on crypto regulations. *This is not investment advice.