G20 Announces Plans for Global Crypto Regulatory Framework Set by FSB, IMF and BIS
The G20 group, which represents the 20 largest economies in the world, has announced that the Financial Stability Board (FSB), the International Monetary Fund (IMF), and the Bank for International Settlements (BIS) will publish papers and proposals for establishing global standards for regulating cryptocurrencies.
As per a summary of the meeting with finance ministers and central bank governors, the FSB is expected to release recommendations by July regarding the supervision, regulation, and oversight of crypto assets, stablecoins, and related markets on a global level.
The G20 has stated that further guidance on crypto regulation is anticipated in September.
The Financial Stability Board (FSB) and the International Monetary Fund (IMF) are expected to publish a synthesis paper that will combine macroeconomic and regulatory perspectives on crypto assets.
The IMF will also release a report on the potential macro-financial consequences of the widespread adoption of central bank digital currencies (CBDCs) in the same month.
The G20 has expressed its eagerness for the IMF-FSB Synthesis Paper, which will promote a coordinated and comprehensive policy approach to crypto-assets by taking into account the macroeconomic and regulatory aspects and assessing the full range of risks associated with them.
The Bank for International Settlements (BIS) will also release a report on conceptual and analytical issues and potential risk mitigation strategies related to crypto assets, although the document does not specify its deadline.
Additionally, a G20 financial task force will examine the potential use of crypto assets to finance terrorist activities.
These announcements were made after a two-day series of official meetings in Bengaluru, India.
During the meetings, which were the first financial meetings held under India’s presidency, the group discussed crucial priorities related to financial stability and regulation of digital assets, as reported by Cointelegraph.
Janet Yellen, the United States Treasury Secretary, emphasized the importance of implementing a robust regulatory framework for crypto-related activities, while also clarifying that the country does not propose an outright prohibition of crypto activities.
In remarks to journalists on the sidelines of the meeting, Kristalina Georgieva, the Managing Director of the IMF, stated that G20 countries should consider banning crypto as an option.
