One month since their summit in India, the powerful global Group of Twenty (G20) members have accepted the crypto regulatory roadmap proposed in a joint report by the International Monetary Fund (IMF) and the Financial Stability Board (FSB) in September 2023 titled ‘IMF-FSB Synthesis Paper: Policies for Crypto-Assets.’
๐๐ง ๐ญ๐ก๐ ๐ฌ๐ฉ๐ข๐ซ๐ข๐ญ ๐จ๐ #๐๐ง๐๐๐๐ซ๐ญ๐ก๐๐ง๐๐ ๐๐ฆ๐ข๐ฅ๐ฒ๐๐ง๐๐ ๐ฎ๐ญ๐ฎ๐ซ๐ ๐๐ง๐ ๐๐จ๐ฅ๐ฅ๐จ๐ฐ๐ข๐ง๐ ๐๐ฎ๐ฅ๐ฅ ๐๐จ๐ง๐ฌ๐๐ง๐ฌ๐ฎ๐ฌ ๐๐ฒ ๐ญ๐ก๐ #๐๐๐ ๐ฆ๐๐ฆ๐๐๐ซ๐ฌ, ๐ญ๐ก๐ ๐ ๐จ๐ฎ๐ซ๐ญ๐ก #๐๐๐ ๐ ๐ข๐ง๐๐ง๐๐ ๐๐ข๐ง๐ข๐ฌ๐ญ๐๐ซ๐ฌ ๐๐ง๐ ๐๐๐ง๐ญ๐ซ๐๐ฅ ๐๐๐ง๐คโฆ pic.twitter.com/OLuPvBv9rx
— Ministry of Finance (@FinMinIndia) October 12, 2023
โWe 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.โ
The IMF-FSB paper supports the idea of thorough regulation and oversight of cryptocurrencies instead of imposing a complete ban.ย The paper’s key recommendations encompass:
- Cross-border collaboration and information exchange among regulatory bodies
- A call for robust governance and risk management frameworks for cryptocurrency companies
- Ensuring authorities have access to pertinent data shared by these companies
As per the paper, the initial assessment of the implementation status of the proposed measures is set to take place by the conclusion of 2025.
At the the most recent G20 meeting of powerful leaders held in India in September 2023, IMF and G20โs Financial Stability Board (FSB) submitted the paper on digital assets for discussion during day 2 of the G20 2023 summit.
In that summit, where the African Union officially joined the G20, a shared set of principles has been agreed upon among the leading world economies, the IMF Deputy Managing Director, Gita Gopinath, said at the time.
One pivotal principle is to refrain from legitimizing the use of cryptocurrencies such as Bitcoin as official legal tender as doing so could jeopardize a nationโs control over its monetary policies. Regarding financial stability, the guidelines propose the licensing and registration of cryptocurrency asset issuers, emphasizing the importance of treating comparable activities and associated risks consistently.
โWe call for the swift implementation of the Crypto-Asset Reporting Framework (CARF) and amendments to the CRS [Common Reporting Standard].
We ask the Global Forum on Transparency and Exchange of Information for Tax Purposes to identify an appropriate and coordinated timeline to commence exchanges by relevant jurisdictions,โย stated a consensus declaration signed by G20 leaders.
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