- The G20 member nations have endorsed the crypto oversight recommendations by the FSB.
- FSB recommendation aims to mitigate risks associated with the cryptocurrency ecosystem.
- G20 would closely monitor the risks involved with the crypto asset ecosystem.
The G20 member nations have endorsed the crypto regulation, supervision, and oversight recommendations by the Financial Stability Board (FSB). The endorsement was contained in a declaration by the group’s spokesperson over the weekend. The G20 declared:
“We endorse the Financial Stability Board’s (FSB’s) high-level recommendations for the regulation, supervision, and oversight of crypto-asset activities and markets and global stablecoin arrangements.”
According to reports, the FSB recommendation aims to mitigate risks associated with the crypto ecosystem. Hence, the G20 observed that it would closely monitor the risks involved with the fast-paced developments in the crypto asset ecosystem. Following the declaration, the Finance Ministers and Central Bank Governors of the G20 nations committed to discussing and taking forward the roadmap during their next meeting in October 2023 in Marrakech, Morocco.
Having endorsed the recommendations, the G20 leaders tasked the FSB and Standard-Setting Bodies (SSBs) with promoting and implementing the recommendations in good time. Moreover, they demanded that responsible bodies ensure the implementation method is consistent across the globe to avoid regulatory arbitrage.
The G20, via the declaration, further welcomed the IMF-FSB synthesis paper. They endorsed a roadmap supporting a coordinated and comprehensive policy and regulatory framework accounting for expanded risks, including risks specific to emerging markets and developing economies (EMDEs).
Furthermore, the G20 welcomed the ongoing global implementation of Financial Action Task Force (FATF) standards in addressing money laundering and the risks around terrorism financing.
Notably, the G20 leaders called for the swift implementation of the CryptoAsset Reporting Framework (CARF) and amendments to the Common Reporting Standards (CRS).
The endorsed roadmap includes planned and ongoing work related to implementing policy frameworks with a scope beyond G20 jurisdictions. It covers a globally coordinated structure for cooperation and information sharing that would bridge the data gaps necessary for understanding the rapidly changing crypto ecosystem.