The recommendations for crypto regulatory frameworks should see daylight in July and September.
Group of Twenty (G20), an intergovernmental forum comprising 19 countries and the European Union, revealed that the International Monetary Fund (IMF), the Bank for International Settlements (BIS), and the Financial Stability Board (FSB) are working on introducing recommendations for a global crypto regulatory framework.
The news was disclosed on February 25th during the meeting with G20 finance ministers and central bank governors.
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In the meeting, G20 representatives said they will work on implementing packages regarding “the Crypto-Asset Reporting Framework.” On top of that, the G20 report noted:
We welcome ongoing work by the FSB and international standard setters to ensure that the crypto-assets ecosystem, including so-called stablecoins, is closely monitored and subject to robust regulation, supervision, and oversight to mitigate potential risks to financial stability.
G20 revealed that by its “third meeting in 2023,” scheduled in July, the FSB is set to introduce its report on decentralized finance (DeFi) and its “high-level recommendations” on regulation and supervision of cryptocurrencies and stablecoins.
On top of that, in September, FSB and IMF are expected to join forces to present “a synthesis paper integrating the macroeconomic and regulatory perspectives of crypto assets.” In the same month, the International Monetary Fund is set to share a report regarding the possible “macro-financial implication of widespread adoption” of central bank digital currency (CBDC).
On the other hand, the Bank for International Settlements (BIS) will provide a report on “analytical and conceptual issues and possible risk mitigation strategies related to crypto assets.”
G20 is set to gather a Financial Action Task Force (FATF), which will investigate the use of cryptocurrencies to fund terrorist-related organizations. Moreover, FATF will look into “ransomware and further work on cyber-enabled fraud and scams.”
The news about G20 planning to roll out a joint policy consensus on crypto assets was revealed in December 2022. At that time, India's federal economic affairs secretary Ajay Seth noted that before launching policy consensus on crypto assets, G20 must study the “economy, monetary policy, and the banking sector” to make an informed decision.
