The intergovernmental forum, Group of Twenty (G20), Invited the Central Bank Governors and G20 Finance Ministers Communique at its meeting in Marrakesh, Morocco.
The forum approved the crypto regulatory roadmap as earlier proposed in a joint paper published by the International Monetary Fund (IMF) and the Financial Stability Board (FSB).
G20 Unanimously Adopt Report on Crypto Regulation
In the paper titled IMF-FSB: Polices for digital assets, the G20, which comprises 19 sovereign countries, the EU, and the African Union (AU), calls for a swift and coordinated execution of the roadmap.
— Ministry of Finance (@FinMinIndia) October 12, 2023
The roadmap includes global coordination and implementation of policy frameworks, information sharing, and closing data gaps. In addition, the IMF-FSB paper suggests a comprehensive regulation for crypto rather than a ban. It encouraged cross-border cooperation and information sharing between regulators.
Based on the resolutions, the first review of these new measures and their implementation should happen at the end of 2025. Also, the IMF published another paper earlier on Assessing Macrofinancial Risks from Digital Assets.
According to the paper, failures in the crypto space and the collapse of FTX and Terra USD have increased the call for crypto regulation. Consequently, they proposed a micro-financial framework to understand and limit cryptocurrency-related risks.
Portugal Central Bank Head Calls for Clear Regulation, Sentiment Echoed in Brazil
Regulators worldwide have called for comprehensive regulation to mitigate the risks associated with crypto assets. According to the Governor of Banco de Portugal, Mario Centeno, national efforts to oversee digital assets won’t work without a global structure.
Centeno expressed this view in the opening speech at the 2023 Banco de Portugal Financial Stability Conference on October 2. He stated that international collaboration was vital to avoid the possibility of regulatory arbitrage.
Further, the Central Bank governor believes that digital assets carry undeniable risks and might not be sustainable in the long term. He praised the Markets in Crypto-Assets (MiCA) framework created by the European Union.
Similarly, a top executive of BaFin, Rupert Schaefer, stated the importance of global regulation in crypto. Schaefer acknowledged the rising progress in crypto adoption in the European Union and the Financial Stability Board’s recommendations.
However, he identified the inconsistencies in digital asset regulations that exist on a global scale. Meanwhile, amid increased regulatory scrutiny, crypto adoption has continued to rise. The Governor of Brazil’s Central Bank, Roberto Campos Neto, on September 27 stated that there was a spike in crypto adoption by Brazilians.
Campos Neto’s remark came during a September 27 speech to the Parliamentary Finance and Taxation Commission. He noted an increase in crypto imports by Brazilians up to 44.2% from January to August 2023, with total realized funds reaching $7.4 billion.
Furthermore, the executive emphasized the popularity of stablecoins and cryptocurrencies as means of payment, which he believes aids tax evasion and criminal activities.
Neto said the bank will respond to this increase by increasing regulation and supervising crypto platforms.