On February 25, the G20 group announced that the Financial Stability Board (FSB), International Monetary Fund (IMF), and Bank for International Settlements (BIS) would be delivering papers and recommendations to establish a global crypto regulatory framework.
The FSB is expected to release, by July 2023, their proposals for the regulation, supervision, and oversight of global stablecoins, crypto assets activities, and markets. This marks a significant step towards a more comprehensive regulatory framework for cryptocurrency marketplaces on an international level.
The G20 has outlined its expectations for September 2023, when the Financial Stability Board (FSB) and the International Monetary Fund (IMF) will jointly submit a synthesis paper integrating crypto assets’ macroeconomic and regulatory perspectives. In the same month, the IMF will also release a report examining the potential macro-financial implications of the widespread adoption of central bank digital currencies (CBDCs).
Furthermore, the Bank for International Settlements (BIS) will also submit a report on analytical and conceptual issues related to crypto assets and potential risk mitigation strategies. In addition, a financial task force within the G20 will evaluate the use of crypto assets to fund terrorist activities.
It is essential to know that the announcement came just two days after the official meetings in Bengaluru, India. At the first financial meeting under India’s presidency, the group discussed critical financial stability and regulatory priorities for digital assets. In her remarks to reporters, United States Treasury Secretary Janet Yellen emphasized the importance of creating a “strong regulatory framework” for crypto-related activities while noting that the country was not advocating an “outright banning of crypto activities.” IMF managing director Kristalina Georgieva also weighed in on the conversation, remarking that G20 nations should consider banning crypto as an option.
