According to Financial Stability Board Chair Klaas Knot, the Financial Stability Board (FSB) and International Monetary Fund (IMF) are set to introduce a joint paper on global crypto policy at this weekend’s G20 summit.
The paper will include a roadmap on the implementation of policy frameworks for crypto, and is a response to the need for a ‘comprehensive policy response’ to risks that cryptocurrencies present.
The FSB has also stated that it developed the framework on the principle of “same activity, same risk, same regulation”.
The letter states that “a number of incidents over the past year have highlighted the vulnerabilities in the crypto-asset ecosystem” and that the close linkages between crypto and the traditional financial system means that the crypto industry “warrants close monitoring”.
Additionally, the letter also warns that “the risks of crypto-assets are not confined to financial stability, but can also include macroeconomic risks relating to monetary sovereignty, capital flow volatility, and fiscal policy”.
Prior to this letter, the G20 had asked for a paper to call for global collaboration on crypto policy, and India, which currently holds the G20 presidency, was pushing for concerns around macrofinancial implications and risks specific to emerging markets and developing economies to be included.