Financial Stability Board (FSB), the G20’s risk monitor, and IMF published a paper for the G20 Summit recommending crypto regulations.
Thursday, the International Monetary Fund (IMF) and the Financial Stability Board (FSB) issued a paper containing policy recommendations and regulatory standards for cryptocurrencies.
India’s G20 Presidency requested that the IMF and FSP construct policy and regulatory frameworks for a unified approach to regulating crypto assets. This week, the paper will be discussed at the G20 summit.
IMF and FSB Issue Recommendations
Financial Stability Board (FSB), the G20’s risk monitor, and the International Monetary Fund (IMF) published a paper with recommendations for global crypto regulations for the G20 Summit.
It is part of international bodies’ efforts to regulate cryptocurrencies and mitigate their macroeconomic and financial stability risks. The IMF enumerated macroeconomic, legal, and financial integrity factors associated with crypto regulations.
The Financial Stability Board (FSB) and standard-setting bodies (SSBs) issued recommendations and standards to address financial stability, financial integrity, market integrity, investor protection, prudential, and other risks associated with crypto-assets.
“The collective recommendations provide comprehensive guidance to help authorities address the macroeconomic and financial stability risks posed by crypto-asset activities and markets, including those associated with stablecoins and those conducted through so-called decentralised finance (DeFi).”
Stablecoins and DeFi continue to be viewed as a threat to macroeconomic and financial stability. It is stated that crypto needs to demonstrate previously asserted benefits, such as cheaper and speedier international payments and increased financial inclusion.
According to previous reports, the India’s Finance Minister Nirmala Sitharaman confirmed discussions on a global framework for regulating crypto assets, with crypto regulation issues being discussed.
Crypto-Friendly Regulations
Crypto companies and the community have urged regulators to adopt crypto-friendly policies. It will contribute to developing crypto, blockchain, Web3, and other innovative technologies. After the Terra-Luna crisis and the collapse of FTX in 2017, crypto scrutiny and restrictions intensified.
Additionally, the industry was targeted for its excessive energy consumption. However, the industry continues to develop, and much has changed since then.
