The G20 Finance Ministers and Central Bank Governors(FMCBG) have agreed on a roadmap to tackle the challenges and explore the opportunities posed by cryptocurrency assets like bitcoin, ethereum, and others. The roadmap was proposed in a synthesis paper jointly prepared by the International Monetary Fund (IMF) and the Financial Stability Board (FSB).
G20 Roadmap on Crypto Assets
The synthesis paper outlines a comprehensive plan aimed at fostering global policy and regulation for crypto assets. It emphasizes the need to address the specific implications of these assets on emerging markets and developing economies (EMDEs). The paper focuses on five key areas, including policy frameworks, outreach beyond G20 jurisdictions, global coordination and cooperation, information sharing, and addressing data gaps.
Read Also: G20 Presidency Puts Global Crypto Regulatory Framework On The Table
The G20 FMCBG communique, issued on Thursday after their fourth and final meeting under the Indian presidency in Marrakesh, Morocco, stated:
“We adopt the roadmap proposed in the Synthesis Paper as a G20 Roadmap on Crypto Assets…We call for swift and coordinated implementation of the G20 Roadmap, including implementation of policy frameworks; outreach beyond G20 jurisdictions; global coordination, cooperation and information sharing; and addressing data gaps,”
The communique stated that the G20 FMCBG would require regular and structured updates from the IMF and FSB regarding the implementation progress of the roadmap. Additionally, it expressed support for the ongoing work and global adoption of standards set by the Financial Action Task Force (FATF) on crypto assets.
G20 Consensus on Crypto Assets
The roadmap adoption aligns with the consensus reached at the recent G20 Leaders’ Summit in New Delhi. During this summit, leaders endorsed the synthesis paper as a foundation for further exploration of crypto assets. Furthermore, they called for prompt implementation of a crypto-asset reporting framework to enhance tax authorities’ visibility into crypto transactions and their participants.
Read Also: Just In: G20 Forges Ahead with Global Crypto Framework
The G20 leaders acknowledged that while crypto assets could provide advantages in terms of financial inclusion, innovation, and efficiency, they also pose risks related to consumer and investor protection, market integrity, tax evasion, money laundering, terrorism financing, and financial stability.
G20 Efforts to Strengthen MDBs
The G20 FMCBG communique covered various important topics alongside crypto assets. These included the strengthening of multilateral development banks (MDBs), management of global debt vulnerabilities, enhancement of cross-border payments, support for sustainable recovery from the COVID-19 pandemic, and advancement in climate action.
According to the communique, the ministers expressed their commitment to drive ambitious efforts in evolving and reinforcing MDBs to tackle 21st-century global challenges with a specific focus on addressing the development needs of low and middle-income countries.
Furthermore, it emphasizes the necessity for further proactive implementation of the G20 Independent Review of MDBs’ Capital Adequacy Frameworks (CAFs) within MDBs’ own government structures while ensuring their long-term financial sustainability.
Read Also: Breaking: IMF And FSB Releases G20 Summit Paper On Crypto Asset Regulation
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
