G20 meetings of the financial officers take a step forward towards cryptor control

G20 meetings of the financial officers take a step forward towards cryptor control

The G20 meeting of Finance Minister and Central Bank Governors (FMCBG) on February 24th and 25th in Bengaluru, India, ended with a strong commitment to regulations for the cryptocurrency sector.

The International Monetary Fund (IMF), the Bank for International Payment Compensation (BIZ) and the Financial Stability Board (FSB) were commissioned to work out recommendations and a timetable for the regulation of the cryptocurrency sector.

G20 meetings of the CFO

"We look forward to the IMF FSB synthesis paper, which will support a coordinated and comprehensive political approach for crypto-assets by taking macroeconomic and regulatory perspectives into account, including the total range of risks that arise from crypto-assets" G20 chairman and result document said.

In addition to the financial ministers and central bank governors Kristalina Georgieva, managing director, IMF, Agustin Carstens, General Director, BIZ, and representative of the Financial Stability Board (FSB).

Klaas Knot, chairman of the FSB, sent a letter to the G20 meeting in which he mentioned that the FSB prepares recommendations for regulating cryptocurrency and decentralized financing.

"This year the FSB will complete its recommendations for the regulation, surveillance and supervision of crypto-assets and markets as well as its recommendations for global stable co-agreements that have the properties that could make the threat of financial stability more acute".

On the edge of the two-day FMCBG event, a seminar on Policy Perspective: Debating The Road to Policy Consensus on Crypto Assets.

Ban and the Tough Talk

IMF chief Kristalina Georgieva gave an indication of the mood at the meeting and said during a Bloomberg interview: "There must be more regulation in this world of private emissions ... We are very much in favor of regulating the world of digital money." And that has top priority!

She made it clear that stable coins that are fully covered by reserves create a "pretty good space for the economy".

cryptocurrencies that are not covered cannot be legal means of payment. And if you endanger financial stability, you can also be banned. But regulations, predictability and adequate consumer measures should be sufficient to ward off risks to financial stability.

Need and demand for regulations

Leading crypto companies such as Terraform Labs and FTX broke together due to a lack of regulation and supervision, which led to investor money lost in billions. This has prompted governments and supervisory authorities to strive for stronger regulation and surveillance rights for crypto companies.

The G20 meeting of the financial bosses that has just come to an end has agreed to consider recommendations from the IMF and the FSB at its subsequent meetings. For the cryptocurrency sector, it promises that the G20 continues with regulatory plans according to the European Union's Mica regulations.

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