FSB and IMF publish regulatory recommendations for cryptoasset activities
11 September 2023 Switzerland
Image: mihail
The Financial Stability Board (FSB) and International Monetary Fund (IMF) have published a report recommending a policy and regulatory response to cryptoasset activities.
In the report, the two organisations state that a comprehensive policy and regulatory response for cryptoassets is necessary to address the macroeconomic risks of cryptoassets.
To address macroeconomic risks, jurisdictions should safeguard monetary sovereignty and strengthen monetary policy frameworks, say the FSB and IMF. This would provide security against excessive capital flow volatility and adopt unambiguous tax treatment of cryptoassets.
In the report, the two institutions encourage implementation of the Financial Action Task Force anti-money laundering and counter-terrorist financing standards to address risks to financial integrity. They outline that this approach could mitigate criminal and terrorist misuse of the crypto-assets sector.
Some jurisdictions, in particular emerging markets and developing economies, may want to carry out additional targeted measures that go beyond the global regulatory baseline to address specific risks.
However, as a starting point, the report sets out a roadmap, developed together with relevant international organisations and standard-setting bodies, to ensure the implementation of the FSB’s and IMF’s recommendations and standards.
The roadmap includes currently planned and ongoing work to build institutional capacity beyond G20 jurisdictions. It also looks to enhance global coordination, cooperation and information sharing while addressing data gaps necessary to understand the rapidly changing crypto-asset ecosystem.
The FSB was tasked by the G20 to promote cooperation among jurisdictional financial authorities to ensure that cryptoasset activities are subject to robust regulation and supervision commensurate to the financial stability risks that they pose, while supporting responsible innovation.
It is chaired by Klaas Knot, president of De Nederlandsche Bank. The FSB secretariat is located in Basel, Switzerland and hosted by the Bank for International Settlements.
In the report, the two organisations state that a comprehensive policy and regulatory response for cryptoassets is necessary to address the macroeconomic risks of cryptoassets.
To address macroeconomic risks, jurisdictions should safeguard monetary sovereignty and strengthen monetary policy frameworks, say the FSB and IMF. This would provide security against excessive capital flow volatility and adopt unambiguous tax treatment of cryptoassets.
In the report, the two institutions encourage implementation of the Financial Action Task Force anti-money laundering and counter-terrorist financing standards to address risks to financial integrity. They outline that this approach could mitigate criminal and terrorist misuse of the crypto-assets sector.
Some jurisdictions, in particular emerging markets and developing economies, may want to carry out additional targeted measures that go beyond the global regulatory baseline to address specific risks.
However, as a starting point, the report sets out a roadmap, developed together with relevant international organisations and standard-setting bodies, to ensure the implementation of the FSB’s and IMF’s recommendations and standards.
The roadmap includes currently planned and ongoing work to build institutional capacity beyond G20 jurisdictions. It also looks to enhance global coordination, cooperation and information sharing while addressing data gaps necessary to understand the rapidly changing crypto-asset ecosystem.
The FSB was tasked by the G20 to promote cooperation among jurisdictional financial authorities to ensure that cryptoasset activities are subject to robust regulation and supervision commensurate to the financial stability risks that they pose, while supporting responsible innovation.
It is chaired by Klaas Knot, president of De Nederlandsche Bank. The FSB secretariat is located in Basel, Switzerland and hosted by the Bank for International Settlements.
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