The group of the 20 largest economies in the world, known as the G20, announced on February 25 that the Financial Stability Board (FSB), the International Monetary Fund (IMF), and the Bank for International Settlements (BIS) will deliver papers and recommendations establishing standards for a global crypto regulatory framework.
The FSB will publish proposals on the regulation, supervision, and oversight of global stablecoins, crypto asset operations, and markets by July, according to a paper summarizing the findings of the conference with finance ministers and central bank governors.
The FSB and the IMF are planning to jointly publish “a synthesis paper incorporating the macroeconomic and regulatory views of crypto assets” in September, which is when the next set of guidelines is anticipated to be released.
The IMF will also release a report on central bank digital currencies in the same month as it does on the “possible macro-financial ramifications of the widespread adoption” (CBDCs). The G20 statement reads as follows:
“We look forward to the IMF-FSB Synthesis Paper which will support a coordinated and comprehensive policy approach to crypto-assets, by considering macroeconomic and regulatory perspectives, including the full range of risks posed by crypto assets.”
G20 and global crypto regulation
The potential advantages of cryptocurrencies and the underlying blockchain technology have also been acknowledged by the G20.
Increased efficiency, quicker and less expensive transactions, and more financial inclusion, especially for the unbanked population, could all be benefits of using cryptocurrency.
The G20 is aware of the dangers connected to cryptocurrencies, such as market manipulation, volatility, and cyberthreats.
To ensure that cryptocurrencies are used safely and responsibly, the regulatory framework is anticipated to achieve a balance between their advantages and disadvantages.
AML/CFT controls, consumer protection, market integrity, and licensing requirements are a few examples of topics that the proposals are likely to touch on.
The G20 acknowledges the need for a concerted international effort to set these norms and advance financial stability around the world which is the reason for the framework for global crypto regulation.
An important step has been taken toward creating a global regulatory framework for cryptocurrencies with the G20 declaration.
The FSB, IMF, and BIS recommendations will lay out precise rules for using cryptocurrencies, ensuring their responsible and safe use while boosting financial stability.
In order to prevent cryptocurrency misuse and guarantee that their potential benefits are fully realized, it is crucial to set clear regulatory norms as cryptocurrencies continue to grow in popularity.
About Kumo
Kumo, registered as Kumo Technologies Inc in Delaware, U.S. is a fiat and crypto social payment app which allows users to exchange fiat (NGN) to crypto, save and earn interest in dollar with as low as $5, utility payment such as DSTV subscription, airtime, data among others.
Kumo wallet is your all-in-one social payment app for seamless payment solutions.
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