On Thursday, September 7, 2023, the Financial Stability Board (FSB) and the International Monetary Fund (IMF) jointly published a comprehensive paper outlining policy and regulatory frameworks for crypto assets. Alongside these frameworks, the two key players in the global financial sector presented a roadmap for the implementation of these policies.
This report was a synthesis of recommendations from both organizations on crafting a policy response to the crypto asset class. It also represents a broader international effort to establish global standards for the crypto industry, particularly in the wake of multiple crypto enterprise collapses in 2022.
Both institutions emphasized that an outright ban on cryptocurrencies won’t mitigate the associated risks. Instead, governments should embrace comprehensive regulatory and supervisory oversight of crypto assets. They also added that specific jurisdictions, particularly emerging markets and developing economies, should consider adopting targeted measures beyond the global regulatory baseline to address peculiar risks.
The FSB had previously published its recommendations in July 2023 in a paper titled “Global Regulatory Framework for Crypto-asset Activities.” Their focus was on regulating, supervising, and overseeing crypto assets, with particular attention to stablecoins and related markets and activities.
On the other hand, the IMF released its recommendations across a series of papers, including a note to the G20 in February 2023.
This new synthesis paper was published in response to the request of the Indian G20 Presidency.
Earlier at a media event in Mumbai on September 5, India’s Finance Minister, Nirmala Sitharaman, highlighted her country’s proactive role in advocating for a coordinated regulatory framework for cryptocurrencies within the G20. According to her, the unified framework is anticipated to bring transparency to the cryptocurrency industry and stimulate its adoption by mainstream financial institutions.
During her talk, Sitharaman revealed that active discussions are happening on this critical issue.
The synthesis paper will be presented to the participants in the G20 summit later this weekend.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
