G20 Backs FSB Crypto Regulation Plans
Leaders of the G20 nations have thrown their support behind the recommendations of the Financial Stability Board (FSB) for the regulation of cryptocurrencies. The endorsement of the FSB’s proposals represents a significant step in the global effort to establish a regulatory framework for the rapidly evolving crypto industry.
🚨 BREAKING: 🇮🇳 India's Finance Minister Nirmala Sitharaman just dropped some MAJOR NEWS 😳
🇮🇳 FM Nirmala Sitharaman announces #G20's keen interest in IMF-FSB's #crypto synthesis paper 🔥
A roadmap for the future of crypto is on the horizon 🚀 pic.twitter.com/52aVb0vzqk
— Keyur Rohit (@CryptoKingKeyur) September 9, 2023
G20 Crypto Regulation Pledge
The announcement was made by Indian Finance Minister Nirmala Sitharaman during the New Delhi Leaders’ Meeting, where G20 members came together to discuss their commitment to monitor the dynamic changes occurring in the digital finance sector. In their declaration, the group outlined plans for financial ministers and central bank governors from member states and organizations to advance the FSB’s crypto roadmap during a meeting scheduled for October 2023 in Marrakech, Morocco.
The FSB’s Synthesis Paper, prepared in collaboration with the International Monetary Fund (IMF), serves as the foundation for this roadmap. It aims to facilitate a coordinated regulatory framework for all G20 members, taking into account the unique challenges posed by emerging markets and developing economies in the realm of cryptocurrency. The roadmap also addresses crucial issues such as money laundering and terrorism financing, which have gained prominence in the context of crypto regulation.
Proposed Crypto Reporting Framework
Among the FSB’s recommendations is the establishment of a Crypto Assets Reporting Framework (CARF) and revisions to the Common Reporting Standard (CRS). These measures are designed to identify individuals or organizations holding assets in accounts outside of their tax jurisdictions. One of the key recommendations put forth by the FSB is that G20 member states, and even countries outside the group, should refrain from granting official currency or legal tender status to cryptocurrencies. Presently, El Salvador stands as the only nation to have adopted Bitcoin (BTC) as legal tender. Previously, the Central African Republic (CAR) had also extended legal status to BTC, only to reverse the decision less than a year later.
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The FSB’s rationale for this recommendation is that according to legal status to cryptocurrencies could have adverse effects on both national and global monetary stability. In addition to addressing private digital currencies, G20 leaders also discussed central bank digital currencies (CBDCs) and their potential impact on cross-border payments and the global financial system. The leaders affirmed their commitment to leveraging digital tools and technologies to ensure the security of virtual ecosystems and promote financial inclusivity worldwide.
