IMF-FSB paper calls for crypto regulation, not ban
IMF) and the Financial Stability Board (FSB) has set out a roadmap to coordinate measures to stop crypto assets from undermining macroeconomic and financial stability.
However, the synthesis, put together at the request of the Indian G20 presidency, stopped short of endorsing a blanket ban on such assets, saying it can be “costly and technically demanding to enforce”.
The crypto asset regulation is a key part of the agenda for G20 leaders when they meet in New Delhi this weekend.
The IMF-FSB Synthesis Paper: Policies for Crypto-Assets provides comprehensive guidance to address the macroeconomic and financial stability risks posed by crypto-asset activities and markets, including those associated with stablecoins and those conducted through so-called decentralised finance (DeFi).
The paper cautioned that these digital assets could have significant implications for monetary stability and capital flows, especially if they are granted official currency or legal tender status.
IMF and regulators set out roadmap to contain crypto risks
“Widespread adoption of crypto assets could undermine the effectiveness of monetary policy, circumvent capital flow management measures, exacerbate fiscal risks, divert resources available for financing the real economy, and threaten global financial stability,” it said.
Any legal tender status for crypto assets could expose government revenues to exchange-rate risks as well, the synthesis paper cautioned.
The paper sets out timelines for the IMF and G20 membership to implement recommendations on crypto assets from the FSB and the International Organization of Securities Commissions (IOSCO).
G20 leaders may lay down crypto regulation blueprint
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