Key takeaways:
- The G20, European, and African Union unanimously accepted the G20 Finance Ministers and Central Bank Governors Communique.
- One of its top recommendations is for regulators to collaborate across borders and share information.
At its meeting in Marrakesh, Morocco, on October 13, the Group of Twenty (G20), an international organization made up of 19 sovereign nations, the European Union, and the African Union, unanimously accepted the G20 Finance Ministers and Central Bank Governors Communique.
The International Monetary Fund (IMF) and the Financial Stability Board (FSB) jointly published a paper in September titled “IMF-FSB Synthesis Paper: Policies for Crypto-Assets,” which included a crypto regulatory roadmap that the G20 members approved. The G20 declares:
“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.”
In place of a total prohibition, the IMF-FSB study proposes extensive regulation of cryptocurrency. One of its top recommendations is for regulators to work together across borders and share information.
Another is for crypto companies to have thorough governance and risk management frameworks. Lastly, access to pertinent data that companies offer to the authorities should be guaranteed.
This paper states that by the end of 2025, the first implementation status review of the suggested measures should take place.
The IMF released a second working paper in October under the title “Assessing Macrofinancial Risks from Crypto Assets.” Researchers from the IMF suggest using this to create a crypto risk assessment matrix that helps nations identify signs and triggers of possible dangers in the industry.
A global framework for cryptocurrency has recently been demanded by regulators all around the world. In order to establish a “strong framework” and prevent the prospect of “regulatory arbitrage,” Mário Centeno, the governor of Portugal’s central bank, called for international cooperation.
Similar remarks were made by the German Federal Financial Supervisory Authority’s executive director of strategy, policy, and control, who emphasized the contradictions that exist on a worldwide level.
