G20 press release: Global crypto rules to be based on coming Financial Stability Board and IMF Synthesis Paper, expected to be ready by September

The basis of coming global crypto rules will be formed on a new synthesis paper, jointly produced by the International Monetary Fund (IMF) and the Financial Stability Board (FSB), announced India as the holder of the Group of 20 (G20) Presidency in Bangalore.

The announcement came after three days of meetings in India among the 20 largest economies of the world, collectively known as the G20, in which creating a global regulatory framework for crypto was a priority.

The discussions held between the G20 Finance Ministers and Central Bank Governors were expected to chart the way forward for globally coordinated crypto rules.

The synthesis paper will be submitted during India’s G20 Presidency which culminates in September when India hosts G20 leaders from around the world, said Indian Finance Minister Nirmala Sitharaman during a press conference.

Asked whether consensus around global crypto regulation that India had prioritised for its G20 presidency will arrive during India’s term, Sitharaman said „first of all we are going through the study process so that their can be informed discussions” – according to coindesk.com

„Something should develop,” Sitharaman added while referring to FSB’s expected paper in July that will lead to the synthesis paper by September.

From the official G20 press release

„We will continue to explore the macro-financial implications of the potential introduction and widespread adoption of Central Bank Digital Currencies (CBDCs), and their effects on cross-border payments, as well as on the international monetary and financial system.”

„We welcome ongoing work by the FSB and international standard setters to ensure that the crypto-assets ecosystem, including so-called stablecoins, is closely monitored and subject to robust regulation, supervision, and oversight to mitigate potential risks to financial stability. We welcome the FSB’s analytical report on decentralised finance (DeFi) and look forward to the FSB’s high-level recommendations for the supervision and regulation of so-called stablecoins and crypto assets, respectively by our third meeting in 2023.

We also welcome the IMF Discussion Paper on the macro-financial implications of Crypto Assets. We look forward to the IMF-FSB Synthesis Paper which will support a coordinated and comprehensive policy approach to crypto-assets, by considering macroeconomic and regulatory perspectives, including the full range of risks posed by crypto assets. We take note of the G20 seminar on “Policy Perspectives: Debating the Road to Policy Consensus on Crypto Assets.”  

G20 provides the list of the elements of the Work Plans for the workstreams under the Finance Track. The reports that may emerge from these workplans are „voluntary and non-binding” – G20 says. „Members will have the opportunity to discuss the reports in their respective working groups and workstreams.”

From the perspective of the international financial architecture, two reports are expected:

. BIS report on key findings and lessons of its CBDC projects, in July 2023. 

. IMF report on the potential macro-financial implication of widespread adoption of CBDCs, in September 2023.

From the prespective of Financial Sector issues, G20 expectations are as follows: 

. FSB to finalise its high-level recommendations on the regulation, supervision and oversight of global stablecoins; and high-level recommendations on the regulation, supervision and oversight of crypto-asset markets and activities by July 2023. 

. BIS to submit a report on analytical and conceptual issues and possible risk mitigation strategies related to crypto assets.

. IMF and the FSB to jointly submit a synthesis paper integrating the macroeconomic and regulatory perspectives of crypto assets in September 2023.