The G20 Finance Ministers and Central Bank Governors (FMCBG) Meeting held in Bengaluru, India, on February 24-25, 2022, has concluded with a strong commitment to regulating the cryptocurrency sector. The meeting was attended by finance ministers and central bank governors from the world’s 20 largest economies, including the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva.
The G20 Chair’s Summary and Outcome Document stated that the IMF, Bank for International Settlements (BIS), and Financial Stability Board (FSB) have been tasked with developing recommendations and a roadmap for regulating the cryptocurrency sector. The document also highlighted the need for a coordinated and comprehensive policy approach to crypto-assets, taking into account macroeconomic and regulatory perspectives, as well as the full range of risks posed by crypto assets.
The G20’s commitment to regulating the cryptocurrency sector comes amid growing concerns about the risks associated with cryptocurrencies, including money laundering, terrorist financing, and market volatility. The G20’s move is expected to provide greater clarity and certainty for investors and businesses operating in the cryptocurrency sector.
The G20’s decision has been welcomed by the cryptocurrency industry, which has long called for greater regulatory clarity and certainty. The industry has also expressed its willingness to work with regulators to develop a regulatory framework that balances innovation and consumer protection.
The G20’s commitment to regulating the cryptocurrency sector is a significant step towards creating a more stable and secure financial system. The IMF-FSB Synthesis Paper is expected to provide a roadmap for regulating the cryptocurrency sector, which will be eagerly awaited by investors and businesses operating in the sector.
