April 19, 2024
G20 Backs IMF-FSB Synthesis Paper: A Step Towards Global Crypto Regulation
Policy & Regulation

G20 Backs IMF-FSB Synthesis Paper: A Step Towards Global Crypto Regulation

The “G20 Finance Ministers and Central Bank Governors Communique” was unanimously approved by the Group of Twenty (G20), an intergovernmental organization made up of 19 independent nations, the European Union, and the African Union, on October 13 during its meeting in Marrakesh, Morocco.

The International Monetary Fund (IMF) and the Financial Stability Board (FSB) jointly published a paper in September titled “IMF-FSB Synthesis Paper: Policies for Crypto-Assets,” which included a roadmap for regulating cryptocurrencies.

“We call for swift and coordinated implementation of the G20 Roadmap, including implementation of policy frameworks; outreach beyond G20 jurisdictions; global coordination, cooperation and information sharing; and addressing data gaps.”

G20

The IMF-FSB study opposes a general crypto prohibition in favour of comprehensive regulation. High-level proposals include a need for robust governance and risk management frameworks for cryptocurrency enterprises, cross-border collaboration and information sharing between regulators, and a guarantee of access to pertinent data supplied by businesses to authorities.

The document suggests that the first evaluation of the suggested measures’ progress in implementation take place by the end of 2025.

The IMF released a new working paper in October titled “Assessing Macrofinancial Risks from Crypto Assets.” Researchers from the IMF suggest a crypto risk assessment matrix for nations to use in identifying signs and precipitating events of possible problems in the industry.

Recently, regulators from all across the world have pushed for a global crypto framework. Portuguese central bank governor Mário Centeno encouraged international collaboration to establish a “robust framework” and prevent “regulatory arbitrage.” The German Federal Financial Supervisory Authority’s executive director of strategy, policy, and control noted the worldwide discrepancies and shared a similar view.

Image: Freepik

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