The G20 leaders have endorsed the Financial Stability Board's (FSB) recommendations for regulating crypto assets and global stablecoins. They emphasized the importance of consistent global implementation to prevent regulatory arbitrage.
The G20 leaders have issued their declaration following their summit in New Delhi, with a specific section addressing the regulation of crypto assets and central bank digital currency (CBDC).
In the declaration, the G20 leaders express their vigilance regarding the rapidly evolving crypto asset ecosystem. They endorse the high-level recommendations put forth by the Financial Stability Board (FSB) for regulating crypto asset activities, markets, and global stablecoin arrangements. These recommendations were finalized by the FSB in July.
The declaration emphasizes the importance of the effective and timely implementation of these recommendations on a global scale, aiming to prevent regulatory arbitrage. The leaders call upon the FSB and other standard-setting bodies to promote and oversee this consistent implementation.
The G20 leaders also extend their appreciation for various reports related to crypto assets, including the shared workplan by the FSB and standard-setting bodies, the IMF-FSB Synthesis Paper, and the BIS Report on The Crypto Ecosystem: Key Elements and Risks.
Of note, the IMF-FSB Synthesis Paper introduces a Roadmap designed to facilitate a coordinated and comprehensive policy and regulatory framework. This framework is intended to address the full spectrum of risks associated with crypto assets, including those specific to emerging markets and developing economies (EMDEs). The Roadmap also aligns with the ongoing global implementation of Financial Action Task Force (FATF) standards to combat money laundering and terrorism financing risks. The finance ministers and central bank governors will delve deeper into the Roadmap at their meeting in October 2023.
Additionally, the G20 leaders welcome discussions about the potential macro-financial implications arising from the introduction and adoption of central bank digital currencies (CBDCs). These discussions include considerations related to cross-border payments and their impact on the international monetary and financial system.
The leaders express their anticipation for the IMF's forthcoming report on the potential macro-financial consequences of widespread CBDC adoption, as well as the insights from the BIS Innovation Hub (BISIH) Report on Lessons Learned on CBDCs. These reports are expected to advance discussions surrounding CBDCs and their implications.
Under India's presidency, the G20 nations have been actively engaged in discussions aimed at establishing a global framework for crypto assets. This ongoing dialogue signifies the G20's commitment to addressing the challenges and opportunities presented by the crypto asset ecosystem on a global scale.
(Kevin Helms, Bitcoin News, 2023)