A coordinated approach to moving forward with crypto assets that takes into account several organizations and various facets of the work presently being done in the sector has been given significant emphasis by the G20. The Presidency Note issued by India serves as a crucial contribution to the IMF-FSB Synthesis Paper, which will include a Roadmap on Establishing a Global Framework for Crypto Assets, by identifying gaps (such as the need to consider macro-financial implications and incorporate the EMDE perspectives) and focusing resources to prevent duplication across organizations.
The Presidency Note identifies certain key issues that may be covered more thoroughly in the Roadmap as a high-level contribution to the IMF-FSB Synthesis Paper. We anticipate that doing so will make it easier to prioritize the tasks needed to establish an extensive, coherent, and coordinated global policy and regulatory framework. This high-level contribution aims to outline a path ahead that can assist stakeholders identify priority areas, such as the need to close data gaps, build capacity, make sure non-G20 nations are reached, and develop frameworks for identifying risks and vulnerabilities for all countries. The responsibility for implementing these priority areas would still fall on IOs and SSBs. To guarantee there is no overlap or any gaps, the IMF, FSB, and FATF might promote coordination of the work being done in the sector.
The Presidency Note recommendations include the following action items in the Roadmap that the IMF and FSB will propose in their Synthesis Paper:
The Presidency Note promotes the effective implementation of the recommendations of the Financial Stability Board (FSB) recommendations, guidelines, and requirements established by the SSBs.
To provide an analysis by the IMF that considers risks unique to EMDEs and macro-financial repercussions in order to supplement the regulatory recommendations made by the FSB (IMF and FSB, respectively).
Continued FSB and IMF monitoring of macro-financial vulnerabilities and dangers to financial stability presented by crypto assets, as well as encouragement of the IMF to implement FSB suggestions into its financial sector surveillance.
To encourage broader adoption and efficient implementation of risk-based anti-money laundering and countering the financing of terrorism (AML/CFT) standards across jurisdictions.
To develop a framework for offering technical help and direction to institutions and regulators that fall within the purview of each SSB and to keep track of how the suggested standards are being applied in each jurisdiction.
Coordination and collaboration with all relevant international organizations (IOs) and standard-setting bodies (SSBs) will be the IMF and FSB's responsibility.
The Presidency Note is issued by India being the President of the G20. This presidency note serves as a roadmap to frame Global Crypto regulations. Furthermore, if the note is accepted and a framework has been made accordingly there will be a few regulations for implementation and regulation of cryptocurrency. This will reduce the number of cryptocurrency-related crimes globally. Furthermore, if there will be proper regulation, there are chances that it might reduce the taxes on Cryptocurrency. This way people will be more interested in investing in the crypto market.
The next possible impact can be that if the presidency note will be accepted by G20, then non-G20 countries will also have to accept the same. As G20 includes all the 20 powerful and strong nations of the world.
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