G20, a powerful intergovernmental forum, unanimously adopted the regulatory roadmap outlined in the joint IMF-FSB Synthesis Paper. This paper was presented by the International Monetary Fund (IMF) and the Financial Stability Board (FSB).

Key Decisions in Marrakesh Meeting

Notably, during their recent gathering in Marrakesh, Morocco on October 13, G20 members, consisting of 19 sovereign nations, the European Union, and the African Union, officially endorsed the “G20 Finance Ministers and Central Bank Governors Communique.”

The heart of the matter lies in G20’s endorsement of the crypto regulatory roadmap. This was proposed in the collaborative report by IMF and FSB titled “IMF-FSB Synthesis Paper: Policies for Crypto-Assets.” The G20’s official statement further emphasizes the urgent need for the rapid and coordinated implementation of the G20 Roadmap.

High-Level Recommendations for Comprehensive Oversight

Contrary to a blanket ban, the IMF-FSB paper advocates for comprehensive oversight of the crypto landscape. Its high-level recommendations include fostering cross-border cooperation and information sharing among regulators, establishing robust governance. Additionally, providing risk management frameworks for crypto companies, and ensuring access to relevant data for authorities.

An image from the G20 Summit that took place in Morocco

Notably, the paper outlines a timeline. It called for the first review of the proposed measures’ implementation status by the end of 2025. This strategic approach further aims to monitor and assess the effectiveness of the regulatory measures in the dynamic crypto environment.

In a separate move, the IMF published a working paper titled “Assessing Macrofinancial Risks from Crypto Assets” in October. This publication introduces a crypto risk assessment matrix designed for countries to identify indicators and triggers of potential risks within the sector.

Global Call for a Unified Regulatory Framework

This development aligns with the growing global consensus among regulators for a unified framework on crypto. Mário Centeno, governor of Portugal’s central bank, stressed the importance of international cooperation in establishing a “robust framework” to prevent regulatory arbitrage.

Similar sentiments were echoed by the executive director of strategy, policy, and control at the German Federal Financial Supervisory Authority. He further emphasized the existing inconsistencies on a global scale.

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