G20 accepts cryptocurrency supervision proposed by IMF-FSB

Marrakesh, Morocco, was the scene of an impactful event in the world of cryptocurrencies between the 12th and 13th of October. The financial titans of the G20, a group made up of 19 sovereign countries, together with the EU and the African Union, have decided to accept the guidelines established by the International Monetary Fund (IMF) and the Financial Stability Board (FSB) for the supervision of cryptocurrencies.

Named “IMF-FSB Summary Paper: Policies for Crypto Assets”, to be report was proposed in September 2023. It is not limited to just being a pile of pages, but a guide, a regulatory roadmap to be followed in the sphere of cryptocurrencies. The G20, directly, expressed its desire to quickly implement the report’s guidelines. Emphasis was placed on global coordination and information sharing, encompassing all corners of the world, not just G20 member countries.

And why is this so relevant to the world of cryptocurrencies? Well, to begin with, this stance adopted by the G20 signals a constructive and open vision towards the crypto universe. Rather than opting for an outright ban, the intention appears to be to ensure that the industry operates in a stable and safe manner.

Among the proposed measures, cross-border cooperation between regulators stands out. This implies that there will be a concerted effort to monitor and regulate the cryptocurrency industry regardless of borders. Additionally, the report highlights the importance of governance and risk management structures for crypto companies. The idea is to ensure that relevant information is made available by crypto companies to the competent authorities.

Furthermore, a latent concern is the misuse of cryptocurrencies in illicit activities. The G20 highlighted the need to employ anti-money laundering standards, in line with the standards established by the Financial Action Task Force (FATF). The aim is clearly to protect against the misuse of digital assets in criminal activities.

On an additional note, the IMF released a document titled “Macrofinancial Risk Assessment of Crypto Assets.” This work suggests a matrix to assess potential risks in the crypto sector, helping countries identify possible threats.

Eyes now turn to 2025, when a review of the proposed measures is scheduled. Until then, the crypto industry eagerly awaits to see the suggested changes and adaptations in action.

Disclaimer:

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.