G20 Unanimously Approves Regulatory Roadmap for Cryptocurrencies
Summary:
The G20, including 19 countries, the EU, and the African Union, unanimously approved a regulatory roadmap for cryptocurrencies during a meeting in Marrakesh, Morocco. Presented in a joint Synthesis paper by the IMF and the FSB, the roadmap promotes comprehensive supervisory oversight of the sector, international cooperation, and information sharing. The first review of the roadmap's implementation is set for the end of 2025.
The Group of Twenty (G20), a forum which includes 19 countries, the European Union, and the African Union, unanimously approved the statement of 'G20 Finance Ministers and Central Bank Governors' in a conference held in Marrakesh, Morocco, on October 13. Concerning cryptocurrency, the G20 embraced the regulatory strategy outlined in the Synthesis paper jointly created by the International Monetary Fund (IMF) and the Financial Stability Board (FSB) in September. The G20's declaration highlights the need for rapid and coordinated execution of the G20 roadmap, which includes expanding engagement beyond G20 jurisdictions through international collaboration, sharing of information, and plugging data disparities.
The Synthesis paper suggested by the IMF and FSB petitioner advocates for comprehensive oversight of cryptocurrency rather than an outright ban. The document proposes key recommendations such as transnational cooperation and information sharing among regulators, the establishment of thorough governance and risk management frameworks for cryptocurrency firms, and ensuring authorities have access to pertinent data provided by these businesses.
The paper also suggests that the first review to assess the effectiveness of the proposed measures should take place by the end of 2025. In a separate development, the IMF released a working paper in October titled “Assessing Macrofinancial Risks from Crypto Assets", in which it offered a crypto-risk assessment matrix for nations to identify indicators and potential risk triggers in the sector.
Mário Centeno of the Banco de Portugal has joined the worldwide call from regulators for an international framework for cryptocurrencies and insists on setting up a solid framework through international collaboration to prevent potential "regulatory arbitrage". Similar thoughts of worldwide regulatory inconsistencies were echoed by the Executive Director of Strategy, Policy and Control at the German Federal Financial Supervisory Authority.
Published At
10/13/2023 8:51:00 AM
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