G20 member countries approved the recommendations of the Financial Stability Board (FSB) and the International Monetary Fund (IMF) on the regulation, supervision and oversight of digital assets.
“We urge the FSB and standardisation bodies to facilitate the effective and timely implementation of these recommendations on a consistent basis worldwide to avoid regulatory arbitrage,” the leaders said.
Global watchdogs presented the document on 7 September at the initiative of India, which currently chairs the G20.
The G20 nations urged the rapid adoption of a crypto-asset reporting regime and amendments to the global standards for financial reporting. At the summit, they also approved measures to assist in the fight against money laundering.
The FSB recommendations cover a large swath of the crypto market. They aim to harmonise standards for jurisdictions to mitigate risks associated with digital assets. Experts highlighted the danger of stablecoins to economic stability.
In the board’s view, DeFi platforms could exacerbate the vulnerabilities of traditional systems.
It is expected that the forthcoming October meeting of finance ministers and central bank governors in Morocco will continue the G20’s dialogue on cryptocurrency regulation.
IMF Managing Director Kristalina Georgieva noted that “there is still a lot of work ahead, including in the area of digital money and crypto assets.”
Earlier, the G20 advisory body found that none of the existing “stablecoins” meet the standards set by the central banks of the world’s largest economies.
Back in July, the FSB presented recommendations on the global regulation of digital assets. The document sets standards for stablecoin issuers and trading platforms.