G20 To Establish Standards For Global Crypto Regulatory Framework
Jessie A Ellis Mar 01, 2023 10:38
The Financial Stability Board, IMF, and BIS will propose worldwide crypto regulations.
It was announced on February 25 by the group of the 20 largest economies in the world, known collectively as the G20, that the Financial Stability Board (FSB), the International Monetary Fund (IMF), and the Bank for International Settlements (BIS) will deliver papers and recommendations establishing standards for a global crypto regulatory framework.
The Financial Stability Board (FSB) is expected to publish its recommendations by July 2023 on the regulation, supervision, and oversight of global stablecoins, crypto asset activities and markets, as stated in a document that provides a summary of the outcomes of a meeting with finance ministers and governors of central banks.
The next set of guidelines is not anticipated to be released until September 2023. At that time, the FSB and the IMF are scheduled to jointly provide "a synthesis document incorporating the macroeconomic and regulatory aspects of crypto assets." Another research on the "possible macro-financial ramifications of the broad adoption" of central bank digital currencies is scheduled to be published by the International Monetary Fund (IMF) in the same month (CBDCs). The following is an excerpt from the statement that was released by the G20: "We look 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."
Additionally, the BIS will provide a paper that discusses analytical and conceptual concerns in addition to potential risk reduction techniques associated with crypto assets. The text does not include any information on the deadline for this report. The use of cryptocurrency assets to finance terrorist operations will also be investigated by a financial task group established by the G20.
During the course of the event, United States Secretary of the Treasury Janet Yellen said that it was "essential to put in place a solid regulatory framework" for activities relating to cryptocurrencies. In addition to this, she emphasized that the nation is not advocating for a "outright ban on crypto activity." In a brief conversation with reporters on the margins of the main event, the managing director of the IMF, Kristalina Georgieva, suggested that the G20 nations need to have the option of outlawing cryptocurrencies.
Image source: Shutterstock