IMF and FSB Release Global Crypto Regulations
The International Monetary Fund (IMF) and the Financial Stability Board (FSB) have jointly released a paper outlining recommendations and standards for global cryptocurrency regulation.
This initiative follows a request by the G20 Presidency India for the IMF and FSB to develop a unified approach to regulating crypto assets. The paper will be a key topic of discussion at the upcoming G20 Summit.
The Financial Stability Board (FSB), responsible for assessing global financial risks, and the International Monetary Fund (IMF) have presented a paper for the G20 Summit, offering recommendations for global cryptocurrency regulation.
This represents a concerted effort by international organizations to regulate the crypto space, with the goal of mitigating potential risks to macroeconomic and financial stability.
The IMF’s contribution to the paper encompasses considerations related to macroeconomics, legal aspects, and financial integrity within the context of crypto regulation. Meanwhile, the FSB and various standard-setting bodies (SSBs) have put forth recommendations and standards aimed at addressing risks associated with crypto-assets, spanning financial stability, financial integrity, market integrity, investor protection, prudential matters, and more.
The paper provides comprehensive guidance for authorities, helping them address the risks posed by activities and markets involving crypto assets, including stablecoins and decentralized finance (DeFi).
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India’s Finance Minister, Nirmala Sitharaman, confirmed discussions concerning the establishment of a global framework for regulating crypto assets, bringing crypto regulation to the forefront of international dialogues.
Cryptocurrency firms and the broader community have been advocating for regulatory frameworks that are favorable to crypto. Such regulations are seen as pivotal in fostering innovation related to cryptocurrencies, blockchain technology, Web3, and other innovative digital technologies.
The crypto industry faced heightened scrutiny and increased regulatory restrictions in the wake of events like the Terra-Luna crisis and the collapse of FTX last year. Additionally, concerns were raised regarding the industry’s energy consumption. Nevertheless, the crypto sector has evolved significantly since then, with a changing landscape and a growing emphasis on addressing regulatory concerns.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
