G20 Gives Go-Ahead To Crypto Regulation Oversight, Rejects Crypto Ban

The joint report issued by the International Monetary Fund (IMF) and the Financial Stability Board (FSB) — IMF-FSB — on crypto regulation oversight has been accepted by the G20 at its recent meeting.

What Happened: At its Oct. 12-13 meeting in Marrakesh, Morocco, the Group of Twenty (G20), consisting of 19 sovereign countries, the EU and the African Union announced its approval of the G20 Finance Ministers and Central Bank Governors Communique.

The report titled "IMF-FSB Synthesis Paper: Policies for Crypto-Assets" was proposed in September 2023 and will now be used as a crypto regulatory roadmap.

Read Also: India Pivots On Crypto After Reviewing G20 Proposal, Secretary Of Economic Affairs Says

“We call for swift and coordinated implementation of the G20 Roadmap, including implementation of policy frameworks; outreach beyond G20 jurisdictions; global coordination, cooperation, and information sharing; and addressing data gaps,” the G20 stated.

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Why It Matters: The paper looks to have a comprehensive oversight of crypto and not ban anything. The suggestions include cross-border cooperation and information sharing between regulators, a demand for comprehensive governance and risk management frameworks for crypto companies, and a guarantee of access to relevant data provided by companies to the authorities.

The paper also professed to employ anti-money laundering norms for protecting the wrongful use of crypto assets for criminal and terrorist activities. It states that jurisdictions should adhere to the Financial Action Task Force (FATF) anti-money laundering and counter-terrorist financing (AML/CFT) standards applicable to virtual assets (VAs) and virtual asset service providers (VASPs).

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The first review of the proposed measures’ implementation status is expected by the end of 2025.

Another published working paper in October by the IMF titled "Assessing Macrofinancial Risks from Crypto Assets" proposes a crypto risk assessment matrix for countries to find indicators and triggers of potential risks in the sector.  

Benzinga's Future of Digital Assets conference is scheduled for Nov. 14. Attend and learn more about crypto regulations. The gathering is seen as pivotal for the digital assets community. The event will spotlight the latest trends, innovations, and challenges in the digital asset realm.

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