Forbes India 15th Anniversary Special

Led by India, the G20 announces global crypto regulatory framework plans

IMF, FSB, and BIS will provide papers and suggestions on the regulation, supervision, and oversight of stablecoins, crypto assets activities, and markets

Shashank Bhardwaj
Published: Feb 27, 2023 05:42:52 PM IST

Led by India, the G20 announces global crypto regulatory framework plansImage: Shutterstock

On February 25, the G20 announced that the International Monetary Fund (IMF), the Financial Stability Board (FSB), and the Bank for International Settlements (BIS) would develop standards for a worldwide regulatory framework for crypto. 

The organisations will provide papers and suggestions on the regulation, supervision, and oversight of stablecoins, crypto assets activities, and markets. The FSB will release recommendations on these matters by July.

The FSB and IMF are expected to release guidance on crypto in September. They will submit a paper that integrates macroeconomic and regulatory perspectives of crypto assets. Additionally, the IMF will report on the potential macro-financial consequences of central bank digital currencies (CBDCs) in the same month. 

G20 statements suggest that the paper will help create a comprehensive policy approach to crypto-assets by considering macroeconomic and regulatory perspectives and the risks posed by crypto-assets.

The BIS is expected to provide a report on conceptual and analytical issues and potential strategies to mitigate risks associated with crypto assets. However, there is no mention of the deadline for this report in the document. Additionally, a financial task force within the G20 will examine how crypto assets may be used to finance terrorist activities.

The G20 announced its plans after holding official meetings for two days in Bengaluru, India. The meetings, which were the first financial meetings under India's presidency, focused on addressing important financial stability and regulatory priorities for digital assets.

At the meetings, United States Treasury Secretary Janet Yellen emphasised the need to establish a robust regulatory framework for crypto-related activities. Yellen clarified that the US is not advocating for the complete prohibition of crypto activities. Meanwhile, IMF managing director Kristalina Georgieva suggested that the G20 nations should consider banning crypto.

Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash