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Bitcoin Recovers as FSB Says Cryptos Not a Risk to Global Stability

Published 03/19/2018, 09:04 AM
© Reuters.  Bitcoin was higher on Monday.
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Investing.com - Bitcoin and other virtual currencies rallied on Monday, amid news that the Financial Stability Board (FSB) is not moving to regulate cryptocurrencies.

Bitcoin was trading at $8,254.90, increasing 7.20% as of 9:03 AM ET (13:03 GMT) on the Bitfinex after hitting an overnight low of $7,350.90 on Sunday.The cryptocurrency has struggled to gain ground after falling to $6,000 in early February and is far from its peak of $20,000 in December.

FSB Chair and Bank of England Governor Mark Carney does not think virtual currencies pose a risk to financial stability, he wrote in a letter to the G20 leaders.

The central bankers and finance ministers of 20 different economies are expected to meet in Buenos Aires on Monday and Tuesday. Some members, such as Japan, have urged watchdogs to regulate cryptocurrencies.

"As its work to fix the fault lines that caused the financial crisis draws to a close, the FSB is increasingly pivoting away from design of new policy initiatives towards dynamic implementation and rigorous evaluation of the effects of the agreed G20 reforms," Carney said.

Other virtual currencies were up, with rival Ethereum, the world’s second largest cryptocurrency by market cap, rising 5.04% to $528.69 on the Bitfinex exchange. Ripple, the third largest virtual currency, was up 8.22% to $0.64640 while Litecoin was last at $154.49, an increase of 5.98%.

In other news, Twitter Inc (NYSE:TWTR) could be considering joining Google (NASDAQ:GOOGL) and Facebook (NASDAQ:FB) in prohibition advertisements for virtual coin wallets, initial coin offerings and token sales. Sky News reported that the ban could take effect in two weeks, but did not disclose its sources.

In January Facebook banned ads that that promote products that are associated with “misleading or deceptive promotional activities” such as ICOs, while Google said last week it would ban ads starting in June.

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