Finance Ministers and Central Bank Governors (FMCBGs) from G20 nations, under the Indian Presidency, have announced unanimously adopting the ‘G20 Finance Ministers and Central Bank Governors Communique’ during its meeting in Marrakesh, Morocco.
This comes a month after the G20 member nations accepted the crypto regulatory roadmap outlined in a collaborative report titled “IMF-FSB Synthesis Paper: Policies for Crypto-Assets,” jointly presented by the International Monetary Fund (IMF) and the Financial Stability Board (FSB).
G20 Members on Crypto
The G20 member nations announced the official adoption of the roadmap put forth in the Synthesis Paper by the International Monetary Fund (IMF) and the Financial Stability Board (FSB).
“We adopt the Roadmap proposed in the Synthesis Paper as a G20 Roadmap on Crypto Assets. This detailed and action-oriented Roadmap is essential to achieve our common goals of macro-economic and financial stability and to ensure effective, flexible, and coordinated implementation of the comprehensive policy framework for crypto assets.”
G20 also called for “swift and coordinated” implementation of the roadmap. This entails the implementation of policy frameworks, extending outreach beyond G20 jurisdictions, global coordination, cooperation, and information sharing, and addressing data gaps.
The intergovernmental forum comprising 19 sovereign countries further requested the IMF and FSB to offer regular and structured updates on the progress of implementation of the roadmap on crypto assets.
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— Ministry of Finance (@FinMinIndia) October 12, 2023
The paper advocated implementing anti-money laundering norms to mitigate risks to financial integrity and prevent the illicit use of cryptocurrency for criminal and terrorist activities. It also recommended that regions should adhere to the anti-money laundering and counter-terrorist financing (AML/CFT) standards established by the Financial Action Task Force (FATF) that pertain to virtual assets (VAs) and virtual asset service providers (VASPs).
Deviating From Outright Ban
India’s Finance Minister, Nirmala Sitharaman, first highlighted that “content-rich papers” from organizations such as the IMF, FSB, and OECD were under consideration back in September. At that time, she also confirmed that both the IMF and the FSB had submitted synthesis papers regarding crypto.
The proposed roadmap deviates from endorsing an absolute prohibition of crypto-assets. Instead, it leans towards a comprehensive strategy centered on regulatory and supervisory oversight, seen as a more practical solution.
This recent development addresses a longstanding demand from industry participants in the region, who have endured uncertainty for a significant period.
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