The G20, the group of the world’s 20 largest economies, has announced plans to establish a global regulatory framework for cryptocurrency. The Financial Stability Board (FSB), the International Monetary Fund (IMF), and the Bank for International Settlements (BIS) will work together to create guidelines and recommendations for the regulation, supervision, and oversight of crypto assets, stablecoins, and related activities.
According to a summary of outcomes from a recent meeting with finance ministers and central bank governors, the FSB is expected to publish its recommendations on global stablecoins and crypto asset activities and markets by July 2023. The IMF and FSB will release a joint synthesis document on macroeconomic and regulatory aspects of crypto assets in September 2023, and the IMF will publish a report on the potential macro-financial implications of central bank digital currencies (CBDCs) at the same time.
The BIS will also provide a paper on analytical and conceptual concerns and risk reduction techniques related to crypto assets, although no deadline has been provided for this report. In addition, a financial task group established by the G20 will investigate the use of cryptocurrency assets to finance terrorist activities.
During the event, US Secretary of the Treasury Janet Yellen emphasized the need for a solid regulatory framework for crypto activities, while also stating that the US is not advocating for an outright ban on crypto. IMF Managing Director Kristalina Georgieva suggested that G20 nations should have the option to outlaw cryptocurrencies.
In a statement released by the G20, they said they “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.”
The establishment of a global regulatory framework for cryptocurrencies could have significant implications for the industry, as it could lead to increased scrutiny and oversight from regulators. It remains to be seen how the guidelines and recommendations will be implemented and whether they will be effective in addressing the risks associated with crypto assets.