G20 adopts roadmap on crypto asset regulation, calls for swift and coordinated implementation

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(Kitco News) – The Finance Ministers and Central Bank Governors (FMCBG) of the Group of Twenty (G20) – the intergovernmental forum comprised of 19 sovereign countries, the European Union, and the African Union – announced that they have formally adopted the G20 roadmap on crypto assets during their meeting in Marrakesh, Morocco on Wednesday.

The roadmap, which was created at the request of the Indian G20 Presidency, was proposed in a joint report by the International Monetary Fund (IMF) and the Financial Stability Board (FSB) titled “IMF-FSB Synthesis Paper: Policies for Crypto-Assets” in September.

The FSB said the goal of the roadmap was to “provide comprehensive guidance to help authorities address the macroeconomic and financial stability risks posed by crypto-asset activities and markets, including those associated with stablecoins and those conducted through so-called decentralized finance (DeFi).”

The document outlined the risks related to legal matters, financial integrity, and market integrity that crypto-asset activities pose to financial markets, and includes planned and ongoing work related to the implementation of crypto-asset policy frameworks. It is intended to help build institutional capacity beyond G20 jurisdictions; enhance global coordination, cooperation, and information sharing; and address data gaps necessary to understand the rapidly changing crypto-asset ecosystem.

“This detailed and action-oriented roadmap will help coordinate global policy as well as develop mitigating strategies and regulations on crypto assets while also taking into consideration the specific implications on Emerging Markets and Developing Economies (EMDEs),” said a joint release from the FMCBGs.

Included in the recommendations were directions related to the supervision of global stablecoin arrangements (GSC), along with support for fintech innovation. The FMCBGs said implementing the recommendations in the IMF-FSB synthesis paper is necessary to ensure that crypto-assets do not disturb the existing financial systems.

“We adopt the Roadmap proposed in the synthesis paper as a G20 Roadmap on crypto assets,” the official note said. “This detailed and action-oriented roadmap is essential to achieve our common goals of macro-economic and financial stability and to ensure effective, flexible, and coordinated implementation of the comprehensive policy framework for crypto assets.”

They called for a coordinated implementation of the roadmap, which includes policy frameworks; outreach beyond G20 jurisdictions; global coordination, cooperation, and sharing of information; and addressing gaps in data.

“We ask the IMF and FSB to provide regular and structured updates on the progress of implementation of the G20 Roadmap on Crypto Assets,” they wrote. “We support the ongoing work and global implementation of FATF standards on crypto assets.”

India’s Ministry of Finance confirmed the adoption of the roadmap on Friday, tweeting, “In the spirit of #OneEarthOneFamilyOneFuture and following full consensus by the #G20 members, the Fourth #G20 Finance Ministers and Central Bank Governors Communique was adopted today in Marrakech, Morocco.”

According to the paper, the first review of the proposed measures’ implementation status should happen by the end of 2025. It is likely that India will provide further clarification on the rules sometime in the next three months as the country’s stint as G20 president will end in December, at which point Brazil will take over leadership of the group.

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