India-led G20 proposes global crypto regulatory framework

The G20 has released a Presidency Note under India’s leadership, emphasizing the importance of consistent crypto regulation and guidance across different jurisdictions.

Coordination and consistency

Following the recommendations of the Financial Stability Board (FSB) and the commitment of the International Monetary Fund (IMF) to deliver a joint IMF-FSB synthesis paper as part of the comprehensive policies to help protect economies and investors in the crypto market, the G20 has released a Presidency Note to help steer the paper in a coordinated manner.

Revealing that the G20 had previously guided on the topic, and despite the FSB and FATF recommendations and standards, there is still a “need for coordination in the consistent implementation of crypto regulations and guidance put in place by different jurisdictions.”

The body has hinted that the synthesis paper, expected at the end of August, would be considered for adoption by the G20. Moreover, it will be endorsed if it incorporates “the agreed FSB and SSB work plans on regulatory issues, as well as other work of the IOs under one umbrella for ease of reference, allowing the G20 to articulate its priorities cohesively and with a clear monitorable framework” for crypto.

The 6-page note also shared that, as a high-level input, it aims to indicate specific areas to be covered comprehensively in the roadmap. It also prioritizes areas of work essential to achieving a cohesive, comprehensive, and coordinated global crypto policy and regulated framework for digital assets.

G20 calls for global crypto regulation

 The G20 aims to establish and strengthen global structures for global cooperation and international standards.

The forum desires global action on crypto assets and hopes to set minimum standards for all to follow. However, this desire has been elusive despite being present for years.

In related news, earlier in May, Dubai’s Financial Services Authority (FSA) emphasized the need for more communication and collaboration between global financial regulators to combat crypto crimes and make life harder for bad actors.