G20 leaders back FSB crypto regulation proposals
11 Sep 2023
The G20 leaders have endorsed the Financial Stability Board’s (FSB) “high-level recommendations for the regulation, supervision, and oversight of crypto-assets activities and markets and global stablecoin arrangements.”
They published their declaration on Sunday following the two-day summit in New Delhi, which includes a section on the policy and regulation of crypto assets and central bank digital currency (CBDC), Bitcoin.com reports.
The leaders of the G20 nations also stressed “the effective and timely implementation of these recommendations in a consistent manner globally to avoid regulatory arbitrage.”
The declaration adds: “We continue to closely monitor the risks of the fast-paced developments in the cryptoasset ecosystem.”
The FSB finalised the recommendations for cryptocurrencies and stablecoins back in July.
Furthermore, the G20 leaders received a number of reports on crypto assets, including “the shared FSB and SSBs [Standard-Setting Bodies] work plan,” “the IMF-FSB Synthesis Paper,” and “the BIS Report on The Crypto Ecosystem: Key Elements and Risks.”
The IMF-FSB Synthesis Paper features a roadmap “that will support a coordinated and comprehensive policy and regulatory framework taking into account the full range of risks and risks specific to the emerging market and developing economies (EMDEs) and ongoing global implementation of FATF standards to address money laundering and terrorism financing risks.”
The paper added: “Our finance ministers and central bank governors will discuss taking forward the roadmap at their meeting in October 2023.”
Earlier in September, India’s Finance Minister Nirmala Sitharaman said the G20 nations are undergoing active discussions regarding a global framework for crypto assets under India’s Presidency.
In relation to central bank digital currency, the declaration says: “We welcome discussions on the potential macro-financial implications arising from the introduction and adoption of central bank digital currencies (CBDCs), notably on cross-border payments as well as on the international monetary and financial system.”
The G20 leaders added: “We welcome the BIS Innovation Hub (BISIH) Report on Lessons Learnt on CBDCs and look forward to the IMF Report on Potential macro-financial implications of widespread adoption of CBDCs to advance the discussion on this issue.”