G20 finance heads adopt roadmap for crypto regulation

G20 finance ministers say the document is necessary to achieve macroeconomic and financial stability goals.

The G20 Finance Ministers and Central Bank Governors (FMCBG) adopted a crypto roadmap designed to support a coordinated regulatory framework for all group members.

As reported by Business Standard, the roadmap called on boosting the World Bank’s capacity to support the “low and middle-income countries to meet the global challenges.” The new regulatory guidelines are based on updates from the International Monetary Fund and Financial Stability Board.

According to the roadmap, jurisdictions should implement the Financial Action Task Force
(FATF) anti-money laundering and counter-terrorist financing (AML/CFT) standards to “address risks to financial integrity” and mitigate criminal and terrorist misuse of cryptocurrencies.

G20 and crypto regulations

In early 2023, the FATF issued a renewed call urging countries to adopt and implement the so-called Travel Rule, as only 29 out of 98 jurisdictions had successfully met the necessary requirements. In 2024, the FATF will monitor market developments, including activities by sanctioned actors, decentralized finance, and peer-to-peer transactions.

Within the next two years, the G20 plans to finalize recommendations set by the Financial Stability Board (FSB) for global stablecoins, including their supervision and regulation. In the meantime, the International Organization of Securities Commissions (IOSCO) is expected to provide recommendations to map risks associated with decentralized finance. However, the document does not mention non-fungible tokens (NFTs).

The intergovernmental forum first presented a crypto roadmap in early August 2023, detailing how financial ministers and central bank governors from member states and organizations could advance the FSB’s crypto recommendations. One of the key recommendations of the roadmap is that G20 members, and even countries outside the group, should not grant crypto status of official currency or legal tender.