FSB, IMF, BIS Papers to Outline Global Crypto Framework, Says G20

[ad_1]

The Financial Stability Board (FSB), International Monetary Fund (IMF), and Bank for International Settlements (BIS) will present documents and recommendations setting standards for a global crypto regulatory framework, the group of 20 largest economies of the world collectively known as the G20 announced on February 25.

According to a document summarizing the results of the meeting with finance ministers and central bank governors, the FSB will issue recommendations by July on the regulation, supervision and monitoring of global stablecoins, activities and markets of crypto assets.

Indian Finance Minister Nirmala Sitharaman at the FMCBG meeting in Bengaluru. Source: Ministry of Finance

The next guidance is expected in September, when the FSB and the IMF are expected to jointly submit a summary document incorporating the macroeconomic and regulatory outlook for crypto-assets. During the same month, the IMF will also report on the potential macro-financial implications of the widespread adoption of central bank digital currencies (CBDCs). According to the G20 communiqué:

We look forward to the IMF-FSB position paper which will support a coordinated and comprehensive policy approach to crypto-assets, taking into account the macroeconomic and regulatory outlook, including the full range of risks posed by crypto-assets.

The BIS will also submit a report on analytical and conceptual issues and possible risk mitigation strategies related to crypto-assets. This reporting deadline is not mentioned in the document. A G20 financial working group will also examine the use of crypto assets to finance terrorist activities.

The announcement came after two days of formal meetings in Bangalore, India. At the first financial meeting under India’s presidency, the group discussed key priorities for financial stability and digital asset regulation, Cointelegraph reported.

During the event, United States Treasury Secretary Janet Yellen said it was essential to have a strong regulatory framework in place for crypto-related activities. She also noted that the country was not suggesting an outright ban on crypto activities. Speaking to reporters on the sidelines of the event, IMF Managing Director Kristalina Georgieva said banning crypto should be an option for G20 countries.

[ad_2]