The Group of Twenty (G20), an intergovernmental forum consisting of 19 sovereign countries, the European Union, and the African Union, unanimously adopted the “G20 Finance Ministers and Central Bank Governors Communique” during their meeting in Marrakesh, Morocco on October 13. This communique represents the G20 members’ acceptance of the crypto regulatory roadmap proposed in a joint report by the International Monetary Fund (IMF) and the Financial Stability Board (FSB) titled “IMF-FSB Synthesis Paper: Policies for Crypto-Assets.” The G20 called for swift and coordinated implementation of the roadmap, including policy frameworks, global coordination and cooperation, outreach beyond G20 jurisdictions, and addressing data gaps.
The IMF-FSB paper advocates for comprehensive oversight of crypto assets instead of a blanket ban. It emphasizes the need for cross-border cooperation and information sharing between regulators, comprehensive governance and risk management frameworks for crypto companies, and access to relevant data provided by companies to the authorities. The paper states that the first review of the proposed measures’ implementation status should occur by the end of 2025.
In addition to the joint report, the IMF published another working paper in October titled “Assessing Macrofinancial Risks from Crypto Assets.” This paper proposes a crypto risk assessment matrix for countries to identify potential risks in the sector. The publication of these papers highlights the growing demand for a global framework on crypto regulation.
Regulators from around the world have been calling for international cooperation to establish a robust framework for crypto assets and prevent regulatory arbitrage. Mário Centeno, the governor of Portugal’s central bank, urged cooperation to avoid the possibility of regulatory arbitrage and establish a robust framework. The executive director of strategy, policy, and control at the German Federal Financial Supervisory Authority also expressed a similar sentiment, highlighting the inconsistencies that exist on a global scale.
The adoption of the G20 Finance Ministers and Central Bank Governors Communique represents a significant step towards global coordination and regulation of crypto assets. The acceptance of the crypto regulatory roadmap proposed by the IMF and FSB demonstrates a recognition of the need for comprehensive oversight and risk management in the crypto sector. As regulators continue to work towards a global framework for crypto regulation, it is expected that further discussions and collaborations will take place to address the challenges and gaps in the current regulatory landscape.
The G20’s commitment to the implementation of the crypto regulatory roadmap and the review process set for 2025 indicate a long-term approach towards addressing the evolving nature of crypto assets. It is anticipated that these efforts will enhance transparency, protect investors, and reduce the risks associated with crypto assets. The coordination and cooperation between regulators at an international level will play a crucial role in ensuring the effective implementation of the regulatory measures outlined in the roadmap, ultimately fostering a more secure and stable environment for the crypto industry.
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