The G20, consisting of the 20 largest economies in the world, has announced that it will establish a global crypto regulatory framework. The Financial Stability Board (FSB), the International Monetary Fund (IMF), and the Bank for International Settlements (BIS) will deliver papers and recommendations setting standards for this framework in July and September of 2023.
Regulating Global Stablecoins and Crypto Assets
The FSB is expected to release recommendations on the regulation, supervision, and oversight of global stablecoins, crypto asset activities, and markets by July 2023. In September 2023, the FSB and the IMF will submit a synthesis paper integrating the macroeconomic and regulatory perspectives of crypto assets. Additionally, the IMF will release a report on the potential macro-financial implications of the widespread adoption of central bank digital currencies (CBDCs). The BIS will also submit a report on analytical and conceptual issues and possible risk mitigation strategies related to crypto assets.
Also Read: IMF Managing Director Meets with Indian Finance Minister
Analyzing the Risks
The G20’s financial task force will also investigate the use of crypto assets to fund terrorist activities. The announcement followed two days of official meetings in Bengaluru, India, where the group addressed key financial stability and regulatory priorities for digital assets.
During the event, United States Treasury Secretary Janet Yellen emphasized the critical need to establish a strong regulatory framework for crypto-related activities. She stated that the country is not proposing an outright ban on crypto activities. Meanwhile, IMF Managing Director Kristalina Georgieva said that banning crypto should be an option for G20 countries.
The G20 looks forward to the IMF-FSB Synthesis Paper, which will support a coordinated and comprehensive policy approach to crypto-assets by considering macroeconomic and regulatory perspectives, including the full range of risks posed by crypto assets.
This story appeared on cointelegraph.com
