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The Financial Stability Board and the International Monetary Fund are preparing to release a collaborative document addressing global cryptocurrency policies, as outlined in a letter from FSB Chair Klaas Knot on Tuesday.
The FSB, an international organization responsible for setting global standards, and the IMF, a global economic agency, will jointly unveil a comprehensive paper during this weekend's G20 Summit. This document outlines a strategic roadmap for the adoption of policy frameworks concerning cryptocurrencies, emphasizing the importance of global coordination, cooperation, and information sharing.
The paper has been solicited by India, which currently serves as the G20's presidency until December. It aims to address the pressing need for a comprehensive policy framework to mitigate the risks associated with cryptocurrencies. Recent incidents, such as the insolvency of the crypto exchange FTX and the collapse of the terraUSD stablecoin, have underscored the vulnerabilities within the crypto sector. These developments emphasize the necessity for vigilant oversight, especially in light of the increasing interconnections between the cryptocurrency market and the broader financial system, as highlighted in the letter.
“The risks of crypto-assets are not confined to financial stability, but can also include macroeconomic risks relating to monetary sovereignty, capital flow volatility and fiscal policy,” Knot wrote.
The paper will emphasize the heightened macrofinancial risks potentially confronting both emerging markets and developed economies, potentially necessitating specific measures.
In August, CoinDesk's report highlighted that the G20 nations were advocating for the inclusion of a plea for worldwide cooperation. India was particularly emphasizing the necessity of addressing concerns related to macrofinancial implications and risks that are unique to emerging markets and developing economies within the document.
In July, the FSB advocated for a worldwide framework, with its officials stating that these regulations need not be entirely novel.
Source Coindesk
