The Group of Twenty (G20), an intergovernmental forum of 19 countries and the European Union, has adopted a roadmap for the implementation of a comprehensive policy framework for crypto assets. The roadmap, which was proposed by the International Monetary Fund (IMF) and the Financial Stability Board (FSB) in September, aims to address the macroeconomic and financial stability risks posed by crypto-asset activities and markets, including those associated with stablecoins and decentralized finance (DeFi).
The G20 finance ministers and central bank governors announced their decision at their meeting in Marrakesh, Morocco, on October 13, 2023. They said that the roadmap was essential to achieve their common goals of macroeconomic and financial stability and to ensure effective, flexible, and coordinated implementation of the policy framework for crypto assets.
The roadmap outlines the following key areas of work:
- Implementation of policy frameworks: The G20 members are expected to implement the policy recommendations made by the IMF and the FSB in their respective jurisdictions, taking into account their specific circumstances and legal systems. The policy frameworks cover issues such as legal clarity, consumer and investor protection, market integrity, financial integrity, prudential regulation, supervision, resolution, monetary policy, fiscal policy, cross-border payments, and international cooperation.
- Outreach beyond G20 jurisdictions: The G20 members are encouraged to engage with non-G20 jurisdictions, especially emerging markets and developing economies (EMDEs), to share their experiences and best practices on crypto-asset regulation and to support capacity building and technical assistance.
- Global coordination, cooperation, and information sharing: The G20 members are urged to enhance their coordination and cooperation at the global level to address regulatory gaps and prevent regulatory arbitrage. They are also expected to improve their information sharing on crypto-asset activities and risks, including through data collection and analysis.
- Addressing data gaps: The G20 members are called upon to address the data gaps that hinder their understanding and monitoring of the crypto-asset ecosystem. They are also asked to support the development of common data standards and definitions for crypto assets.
The G20 members also mandated the IMF and the FSB to provide regular and structured updates on the progress of the implementation of the roadmap. They also expressed their support for the ongoing work and global implementation of the Financial Action Task Force (FATF) standards on crypto assets.
The adoption of the roadmap by the G20 is seen as a positive step towards providing regulatory clarity and certainty for the crypto industry. It may also boost the confidence and trust of investors, consumers, businesses, and governments in crypto assets as a new asset class. However, some challenges remain, such as ensuring consistency and coherence among different regulatory approaches, balancing innovation and risk management, addressing cross-border issues, and adapting to the fast-changing nature of the crypto-asset market.
This post Crypto Regulation Gets a Boost As G20 Agrees on a Global Roadmap was originally published at Finance Crave
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