IMF releases paper on policy and regulation for crypto-assets, commissioned by G20

The International Monetary Fund (IMF) and the G20’s Financial Stability Board (FSB) have released a joint paper outlining policy and regulatory recommendations to address the risks associated with crypto-assets.

In the report, the IMF recognize that there is potential for crypto-assets to pose systemic risks in certain jurisdictions if they become widely used for payments or retail investments. The IMF has identified key elements for an effective policy response, considering macroeconomic, legal, and financial integrity considerations, as well as the implications for monetary and fiscal policies. Additionally, the FSB and standard-setting bodies (SSBs) have issued regulatory and supervisory recommendations to tackle risks related to crypto-assets, including financial stability, market integrity and investor protection.

In response to a request from the Indian G20 Presidency, the IMF and FSB have collaborated to develop this paper, presenting comprehensive guidance for authorities in addressing the macroeconomic and financial stability risks associated with crypto-assets. The paper encompasses activities and markets linked to stablecoins and decentralized finance (DeFi).

It is important to note that the paper does not introduce new policies, recommendations, or expectations for member authorities. Instead, it clarifies the interaction between the policy and regulatory frameworks designed by the IMF, FSB, and SSBs.

The paper emphasizes the necessity of coordinated efforts and global cooperation to effectively manage these risks and provides an implementation roadmap to further enhance understanding and address data gaps in the evolving crypto-asset ecosystem.