G20 member nations endorse regulatory recommendations for crypto assets

The G20 member nations have endorsed the recommendations of the Financial Stability Board (FSB) for the regulation and oversight of crypto assets to mitigate risks. The G20 leaders also welcome discussions on the implications of Central Bank Digital Currencies on cross-border payments and aim to foster secure digital ecosystems for financial inclusion

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The G20 member nations have unanimously endorsed the Financial Stability Board’s (FSB) recommendations on regulating, supervising, and overseeing crypto assets, aiming to mitigate the associated risks.

In a meeting scheduled to take place in Morocco, in October 2023, the G20 Finance Ministers and Central Bank Governors will discuss the implementation of these recommendations .

The New Delhi Leaders’ Declaration formalized the G20’s support for the FSB’s high-level recommendations, emphasizing the need for a comprehensive policy and regulatory framework for crypto assets. They have highlighted the importance of considering the unique risks faced by emerging market and developing economies and stressed the need for global implementation of the standards established by the Financial Action Task Force (FATF) to combat money laundering and terrorism financing.

The leaders have welcomed the shared work plan for crypto assets developed by the FSB and other standard-setting bodies, as well as the Bank for International Settlements’ (BIS) report “The Crypto Ecosystem: Key Elements and Risks.” They have called for the swift adoption of the Crypto Asset Reporting Framework (CARF) and amendments to the Common Reporting Standard (CRS), seeking to enhance institutional capacity, promote global coordination and cooperation.

While the FSB recommendations are currently high-level and principles-based, the FSB will consider the need for additional guidance or recommendations, taking into account international sectoral standards and guidance developed by other standard-setting bodies.

The New Delhi Leaders’ Declaration stated the importance of the macro-financial implications that Central Bank Digital Currencies (CBDCs) could have, particularly in cross-border payments and the international monetary and financial system. They have pledged to leverage digital tools and technologies to create secure and resilient digital ecosystems, ensuring financial inclusion for all.