The Financial Stability Board (FSB), the International Monetary Fund (IMF), and the Bank for International Repayments (BIS) have been tasked with laying out principles for a Global Cryptocurrency Regulatory Framework,The Group of 20 (G20) made an Announcement on February 25th, 2023.
The G20, Comprised of the world’s 20 Biggest Economies, has recognized the requirement for a coordinated international effort to address the risks associated with Cryptocurrencies and lay out clear regulatory rules for their use.
The Announcement comes in light of the quick growth of Cryptocurrencies and their increasing use in Global financial transactions. The FSB, IMF, and BIS will Convey papers and recommendations on the regulation, supervision, and oversight of Stablecoins, Crypto asset activities, and markets by July of this current year. The recommendations are expected to lay out clear rules for the use of Cryptocurrencies and assist with preventing their misuse for Criminal activities, for example, money laundering and fear based oppressor supporting.
The benefits of Cryptocurrencies and the underlying technology have been recognized by the G20.The use of Cryptocurrencies could offer benefits like increased efficiency, faster and cheaper transactions, and greater financial consideration, particularly for the unbanked population.
Nevertheless, the G20 acknowledges the risks associated with cryptocurrencies, including volatility, market manipulation, and cyber attacks.The regulatory framework is expected to figure out some kind of Harmony between the risks and benefits of cryptocurrencies, guaranteeing their protected and dependable use. The Recommendations are probably going to address issues, for example, authorizing prerequisites, Anti-Money Laundering and counter-psychological warfare Supporting (AML/CFT) measures, Consumer protection, and market integrity. The G20 Recognizes the requirement for a coordinated international effort to lay out these guidelines and promote global financial stability.
In conclusion, the G20’s Announcement marks a significant stage towards laying out a Global Regulatory framework for Cryptocurrencies. The recommendations from the FSB, IMF, and BIS will provide clear rules for the use of Cryptocurrencies, Guaranteeing their protected and capable use while promoting financial Stability. As Cryptocurrencies continue to gain in popularity, it is fundamental to lay out Clear Regulatory Rules to prevent their misuse and guarantee their potential benefits are fully realized.