In a significant move towards global crypto regulation, the G20 Finance Ministers and Central Bank Governors (FMCBGs) endorsed a comprehensive policy framework, or roadmap, for regulating crypto assets at their final meeting in Marrakesh on Friday.
The roadmap, grounded in the IMF-FSB's Synthesis Paper, aims to mitigate macroeconomic and financial stability risks associated with crypto-assets. It emphasizes global coordination and includes applying Financial Action Task Force (FATF) anti-money laundering and counter-terrorist financing standards. The framework also takes into account the implications on Emerging Markets and Developing Economies (EMDEs) and seeks to harmonize divergent regulatory approaches worldwide.
The FMCBGs called for the coordinated implementation of this roadmap, suggesting global supervision of stablecoins and supporting responsible fintech innovation. It also leaves room for domestic judiciary approaches. The roadmap is expected to guide India's rules for the volatile digital assets sector, which are anticipated to be finalized by year-end.
Following the G20's adoption of this framework, Bitcoin price stabilized under $27,000. The adoption was announced by India's Ministry of Finance via a tweet. Brazil was welcomed as the next G20 chief during the meeting in Morocco.
This development comes amidst growing popularity of crypto investments and controversy in its regulatory process. Governments aim to regulate the sector to curb illicit activities and shield citizens from scams, making this roadmap a crucial step towards achieving these objectives under India's 2023 G20 presidency.
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