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G20 outlines roadmap for global cryptocurrency regulation

The Group of 20 (G20), an organization that brings together the world’s largest economies, is already on track to introduce global regulation for the Bitcoin (BTC) and cryptocurrency markets.

In his opinion jointly released this Sunday, September 10, following a two-day summit in New Delhi, India; The G20 dedicated a room to the cryptoasset ecosystem. The countries there welcomed the timetable proposed days ago to regulate the cryptocurrency industry from the Financial Stability Board (FSB) and the International Monetary Fund (IMF).

Specifically, the G20 announced its support for the FSB’s recommendations on the regulation and supervision of cryptoasset activities and markets. He also asked this organization to do it promote the “effective and timely” implementation of these recommendations“to avoid regulatory arbitrage.”

The group also said it “welcomed” the regulatory synthesis published last week by the IMF and FSB, which lays out the roadmap “that will support a comprehensive and coordinated regulatory and policy framework that takes into account all risks specific to the emerging market.” – and developing countries.

As the G20 explained, finance ministers and the governors/presidents of central banks of member countries will discuss the progress of the cryptocurrency regulation roadmap at your next meetingplanned for the month of October 2023.

As CriptoNoticias reported last week, the IMF and FSB released their summary of recommendations to governments on regulating the Bitcoin and cryptocurrency market They standardized their criteria around the supervision of the emerging industry.

Among the institutions’ recommendations to governments, the following stood out: Avoid allowing cryptocurrencies as legal tenderarguing that it could destabilize the financial system.

The IMF and FSB also recommended that governments acquire “appropriate powers” ​​that would allow them to regulate, supervise and supervise crypto asset activities and markets.

G20 wants to accelerate the exchange of information on cryptocurrencies

As part of the G20’s interest in regulating the cryptocurrency ecosystem, the countries said in their statement that they are calling for “rapid implementation” of the Crypto Asset Reporting Framework (CARF).

Such a framework assumes that the countries that make up the G20 begin a process of sharing information about cryptocurrency holdings. This is a measure that It would affect many countries where the ecosystem is remarkable.

That is, the application of this framework would establish that Germany, Argentina, Australia, Saudi Arabia, Brazil, Canada, China, France, India, Indonesia, Italy, Japan, Mexico, United Kingdom, Russia, South Africa, South Korea and Turkey , United States and the European Union; have a duty to report on movements and holdings in cryptocurrencies.

In this sense, the G20 called on the Global Forum on Transparency and Exchange of Information for Tax Purposes to “determine an appropriate and coordinated timetable”. Start sharing information between the bloc’s jurisdictionswhich was originally planned for 2027.

Other “global” regulations

The G20’s interest in the roadmap to create a regulatory framework for the cryptocurrency ecosystem is not unique. Other large units as well as country blocs, They have publicly expressed their intention to regulate the market worldwide.

As CriptoNoticias reported in May, the Group of Seven (G7), which includes Germany, Canada, the United States, France, Italy, Japan and the United Kingdom; He stated that he is “committed” to applying “effective regulations” to the cryptocurrency market. including services related to this ecosystem.

The G7 said the regulatory framework “is consistent with FSB recommendations, standards and guidelines.” In addition, he showed open support for the recommendations of the Financial Action Task Force (FATF), focuses precisely on regulating the sector.

Global regulation of the cryptocurrency market has also reached the banking sector. In December 2022, the Basel Committee on Banking Supervision, a body of the Bank for International Settlements (BIS), reported that it had adopted regulations governing banks’ relationships with Bitcoin and crypto assets.

Such regulations are aimed at giving something a “sound and prudent” regulatory framework for banks exposed to cryptocurrencies, according to the company, which argues that the regulation “promotes responsible innovation,” as this media reports.

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