G20 welcomes IMF-FSB Synthesis Paper on cryptocurrencies

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G20 leaders agreed on the IMF-FSB Synthesis Paper on cryptocurrencies, including a roadmap, that will support a coordinated and comprehensive policy and regulatory framework, said the declaration paper on September 9.

The synthesis paper was submitted on September 7, to the G20 members and discussed at the meeting of finance deputies in New Delhi ahead of the Leaders' Summit on September 9-10.

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G20 declaration further added that they continue to closely monitor the risks of the fast-paced developments in the crypto asset ecosystem.

" We endorse the Financial Stability Board’s (FSB’s) high-level recommendations for the regulation, supervision, and oversight of crypto-assets activities and markets and of global stablecoin arrangements," it added.

While addressing to the media in New Delhi, Finance Minister Nirmala Sitharaman said, "I don't want to get into the debate just now whether crypto will be regulated or banned. The G20 will take a call on that."

The paper, written by IMF and FSB at the request of the Indian G20 Presidency, contains policy recommendations and standards to help authorities address the macroeconomic and financial stability risks posed by crypto-asset activities and markets, including those associated with stablecoins and those conducted through decentralised finance.

G20 decleration further added that they have asked the FSB (Financial Stability Board) and SSBs (Standard Setting Bodies) to promote the effective and timely implementation of these recommendations in a consistent manner globally to avoid regulatory arbitrage.

"We welcome the shared FSB and SSBs workplan for crypto assets, said declaration paper.