One month since their summit in India, the powerful global Group of Twenty (G20) members have accepted the crypto regulatory roadmap proposed in a joint report by the International Monetary Fund (IMF) and the Financial Stability Board (FSB) in September 2023 titled ‘IMF-FSB Synthesis Paper: Policies for Crypto-Assets.’
𝐈𝐧 𝐭𝐡𝐞 𝐬𝐩𝐢𝐫𝐢𝐭 𝐨𝐟 #𝐎𝐧𝐞𝐄𝐚𝐫𝐭𝐡𝐎𝐧𝐞𝐅𝐚𝐦𝐢𝐥𝐲𝐎𝐧𝐞𝐅𝐮𝐭𝐮𝐫𝐞 𝐚𝐧𝐝 𝐟𝐨𝐥𝐥𝐨𝐰𝐢𝐧𝐠 𝐟𝐮𝐥𝐥 𝐜𝐨𝐧𝐬𝐞𝐧𝐬𝐮𝐬 𝐛𝐲 𝐭𝐡𝐞 #𝐆𝟐𝟎 𝐦𝐞𝐦𝐛𝐞𝐫𝐬, 𝐭𝐡𝐞 𝐅𝐨𝐮𝐫𝐭𝐡 #𝐆𝟐𝟎 𝐅𝐢𝐧𝐚𝐧𝐜𝐞 𝐌𝐢𝐧𝐢𝐬𝐭𝐞𝐫𝐬 𝐚𝐧𝐝 𝐂𝐞𝐧𝐭𝐫𝐚𝐥 𝐁𝐚𝐧𝐤… pic.twitter.com/OLuPvBv9rx
— Ministry of Finance (@FinMinIndia) October 12, 2023
“We call for swift and coordinated implementation of the G20 Roadmap, including implementation of policy frameworks; outreach beyond G20 jurisdictions; global coordination, cooperation and information sharing; and addressing data gaps.”
The IMF-FSB paper supports the idea of thorough regulation and oversight of cryptocurrencies instead of imposing a complete ban. The paper’s key recommendations encompass:
Cross-border collaboration and information exchange among regulatory bodies
A call for robust governance and risk management frameworks for cryptocurrency companies
Ensuring authorities have access to pertinent data shared by these companies
As per the paper, the initial assessment of the implementation status of the proposed measures is set to take place by the conclusion of 2025.
At the the most recent G20 meeting of powerful leaders held in India in September 2023, IMF and G20’s Financial Stability Board (FSB) submitted the paper on digital assets for discussion during day 2 of the G20 2023 summit.
In that summit, where the African Union officially joined the G20, a shared set of principles has been agreed upon among the leading world economies, the IMF Deputy Managing Director, Gita Gopinath, said at the time.
One pivotal principle is to refrain from legitimizing the use of cryptocurrencies such as Bitcoin as official legal tender as doing so could jeopardize a nation’s control over its monetary policies. Regarding financial stability, the guidelines propose the licensing and registration of cryptocurrency asset issuers, emphasizing the importance of treating comparable activities and associated risks consistently.
“We call for the swift implementation of the Crypto-Asset Reporting Framework (CARF) and amendments to the CRS [Common Reporting Standard].
We ask the Global Forum on Transparency and Exchange of Information for Tax Purposes to identify an appropriate and coordinated timeline to commence exchanges by relevant jurisdictions,” stated a consensus declaration signed by G20 leaders.
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