The crypto regulatory campaign has been a topic in motion since hacks and theft rates have been rapidly increasing. G20 members however have patronized the supervision and ongoing regulatory rules that have been set to fight misdeeds in the industry.
The Financial Stability Board (FSB) has been on the watch and the firm is already working to eliminate the risks on crypto assets. Furthermore, FSB received endorsement from G20 and a declaration voice from one of the members stating that,
“We endorse the Financial Stability Board’s (FSB’s) high-level recommendations for regulating, supervising, and overseeing crypto-asset activities and markets and global stablecoin arrangements.”
Following more reports it was said the recommendation from FSB is looking towards diminishing all risks associated with Crypto. As a result, the G20 noted that it will carefully watch the risks associated with the rapid changes in the ecosystem for digital assets.
A follow-up meeting will be held in October 2023 in Marrakech, Morocco by the Finance Ministers and G20 nations Central Bank Governors. The agenda of the conference is to closely discuss the way forward towards implementing the roadmap.
In addition, G20 leaders requested the standard-setting Bodies and FSB to take action on time before things get out of hand. Furthermore, bodies in charge of the move should also work on making sure that the regulations put across are consistent globally to avoid arbitrage. The G20 also welcomed the global implementation of the Financial Action Task Force(FATF) to take part in money laundering and other financial misdeeds.
The IMF- FSB synthesis paper was also involved in the declaration. They approved a plan for a coordinated, comprehensive, and risk-aware policy and regulatory framework that takes into account increased risks, especially those unique to emerging markets and developing economies (EMDEs).
The roadmap focuses more on the upcoming and ongoing efforts to develop policy beyond the G29 region. However, it consists of global collaboration and an information-sharing structure designed to fill the data gaps needed to understand the rapidly changing crypto environment.
