The initiative follows the introduction of a roadmap proposed in a synthesis paper by the IMF and FSB, aimed at fostering international policies and regulations for crypto assets.
With the growing participation of investors in the crypto market, the group of G20 Finance Ministers and Central Bank Governors (FMCBG) have agreed to work on a common roadmap in handling the challenges associated with the crypto market.
The roadmap was introduced through a collaborative synthesis paper by the International Monetary Fund (IMF) and the Financial Stability Board (FSB). This synthesis paper outlines a holistic strategy aimed at promoting international policies and regulations for cryptocurrency assets.
It underscores the necessity of addressing the distinctive impacts of these assets on emerging markets and developing economies (EMDEs). The document places its emphasis on five core areas, encompassing policy frameworks, extending efforts beyond G20 jurisdictions, fostering global coordination and collaboration, facilitating information exchange, and bridging gaps in data.
The decision came during the fourth and final meeting in Marrakesh, Morocco, under the Indian presidency. Besides, the communique 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 underlined that the G20 Finance Ministers and Central Bank Governors (FMCBG) would request systematic and periodic reports from the IMF and FSB regarding the implementation advancement of the roadmap. Furthermore, it conveyed endorsement for the continuous efforts and worldwide adherence to the standards established by the Financial Action Task Force (FATF) concerning cryptocurrency assets.
G20 Focuses on Strengthening MDBs
The G20 FMCBG communique delved into a range of significant subjects, not limited to crypto assets. These encompassed measures to fortify multilateral development banks (MDBs), strategies to manage global debt vulnerabilities, enhancements in cross-border payments, support for a sustainable recovery from the COVID-19 pandemic, and progress in climate action.
As per the communique, the ministers conveyed their dedication to steering ambitious initiatives in the evolution and empowerment of MDBs to address contemporary global challenges. They also discussed specific attention to meeting the development requirements of low and middle-income nations.
Moreover, it underscored the importance of taking further proactive steps in implementing the G20 Independent Review of MDBs’ Capital Adequacy Frameworks (CAFs) within the governance structures of MDBs themselves while upholding their long-term financial soundness.
G20 leaders recognized that cryptocurrency assets offer potential benefits in areas like financial inclusion, innovation, and operational efficiency. However, they also identified associated risks concerning consumer and investor safeguards, market integrity, tax avoidance, money laundering, terrorism funding, and financial stability.