The Monetary Stability Board’s (FSB) recommendations for crypto regulation, supervision, and oversight have received the support of the G20 members. The group’s spokeswoman released a statement over the weekend that included the endorsement. The G20 pronounced:
“We support the high-level recommendations of the Monetary Stability Board (FSB) for the regulation, supervision, and oversight of crypto-asset actions and markets and global stablecoin preparations.”
The FSB suggestion aims to reduce risks associated with the crypto industry based on experience. The G20 realised that it could closely watch the risks associated with the rapid changes in the ecosystem for crypto assets. Following the announcement, the G20 countries’ finance ministers and central bank governors committed to discussing and moving forward with the plan at their ensuing summit in October 2023 in Marrakech, Morocco.
The G20 leaders gave the FSB and Normal-Setting Bodies (SSBs) the responsibility of spreading and putting the recommendations into practise as soon as possible after endorsing them. In order to prevent regulatory arbitrage, they also asked that responsible entities guarantee that the implementation method is uniform worldwide.
The IMF-FSB synthesis study was additionally welcomed by the G20 through the proclamation. They supported a plan for a coordinated, comprehensive regulatory and policy framework that takes into account increased risks, including those unique to emerging markets and developing economies (EMDEs).
The G20 also applauded the continued international application of Financial Action Task Force (FATF) standards in combating money laundering and the risks associated with terrorism funding. Notably, the G20 leaders called for the Frequent Reporting Requirements (CRS) to be changed and the CryptoAsset Reporting Framework (CARF) to be implemented quickly.
The approved roadmap includes intentional and ongoing work related to putting into place coverage frameworks that reach beyond G20 states. It outlines a globally coordinated framework for collaboration and information exchange that could close the knowledge gaps necessary for comprehending the rapidly evolving crypto ecosystem.
