G20 Finance Ministers and Central Bank Governors have adopted the roadmap for crypto regulation as proposed by the International Monetary Fund (IMF) and the Financial Stability Board (FSB).
The roadmap is not for a blanket ban on crypto-assets, but prefers a comprehensive regulatory and supervisory oversight as a better option.
The fourth, and final, meeting of the FMCBGs under the India’s Presidency of G20 was held on Thursday and Friday in Marrakech, Morocco, on the sidelines of the IMF/WB Annual Meetings. The G20 meet unanimously adopted the G20 Finance Ministers and Central Bank Governors Communiqué, per a statement issued by the Finance Ministry.
G20 Roadmap
While adopting the Synthesis Paper as the G20 roadmap on crypto-assets, the communiqué said, “A detailed and action-oriented roadmap is essential to achieve our common goals of macro-economic and financial stability and to ensure effective, flexible, and coordinated implementation of the comprehensive policy framework for crypto-assets. We call for a swift and coordinated implementation of the G20 roadmap, including the implementation of policy frameworks, outreach beyond G20 jurisdictions, global coordination, co-operation, and information sharing, and addressing data gaps.”
“We ask the IMF and the FSB to provide regular and structured updates on the progress of the implementation of the G20 roadmap on crypto-assets. We support the ongoing work and global implementation of FATF (Financial Action Task Force) standards on crypto-assets,” it added.
Checks on misuse
The synthesis paper advocated a comprehensive regulatory and supervisory oversight of crypto-assets, as opposed to a blanket ban to address macroeconomic and financial stability risks. It also pitched for using norms for money laundering to check the misuse of crypto-assets for criminal and terrorist activity... The paper said that jurisdictions should implement the FATF anti-money laundering and counter-terrorist financing (AML/CFT) standards that apply to virtual assets (VAs) and virtual asset service providers (VASPs).
additional measures
The paper called for additional steps to be taken by some jurisdictions, in particular emerging economies, to address specific risks... especially if they face elevated macro-financial risks from crypto-assets.
Jurisdictional characteristics include the size of the economy and financial system, regulatory priorities, institutional quality and capacity, and level of financial integration into the global economy.
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