G20 nations rally for implementation of crypto roadmap proposed by IMF

• G20 nations embraced the G20 Roadmap on Crypto Assets, underlining the need for a comprehensive crypto policy.
• The G20 roadmap provides a plan for implementing crypto regulations based on IMF-FSB's Synthesis Paper first released in September.
• The G20 calls for updates from the IMF and FSB to track the progress of implementing the proposal.

Finance Ministers and Central Bank Governors (FMCBG) from G20 countries endorsed the G20 Roadmap on Crypto Assets under the Indian presidency on Friday. The framework intends to unify the divergent approaches seen in different countries when regulating crypto, which goes from outright bans to more flexible approaches towards welcoming digital assets. 

India's Ministry of Finance noted in a tweet on X that G20 FMCBG adopted a joint communique in the fourth and final meeting held in Morocco.

G20 nations embrace crypto framework 

FMCBG Communiqué adopted the roadmap that was first proposed in an IMF-FSB Synthesis Paper.

 “This detailed and action-oriented roadmap will help coordinate global policy as well as develop mitigating strategies and regulations on crypto assets while also taking into consideration the specific implications on Emerging Markets and Developing Economies (EMDEs)," according to the official release.

The paper, first released in September, outlined a comprehensive approach to macroeconomic and financial stability risks associated with crypto-assets. The report also pushed the application of the Financial Action Task Force (FATF) anti-money laundering and counter-terrorist financing standards to counter some of the risks in the space.

FMCBG noted in the statement the International Monetary Fund (IMF) and the Financial Stability Board (FSB) provide regular and structured updates on the progress of implementing the G20 Roadmap on Crypto Assets.

Bitcoin stabilized after G20 adoption

The roadmap called for ensuring effective, flexible, and coordinated implementation of a comprehensive policy framework for crypto assets, with emphasis on global collaboration.

With the G20 nations embracing a common crypto framework, it holds potential to establish a unified regulatory structure for the asset class globally. This is particularly significant as India, during its 2023 G20 presidency, has been advocating for a shared framework to oversee crypto assets. 

Governments and regulators around the globe are still deciding how to regulate crypto assets as more citizens opt for crypto as part of their investment. Most governments want to step into the sector to detect and stop illicit activities involving cryptocurrencies and to protect citizens from scams. However, the regulatory process is riddled with controversy within a sector that aspires to maintain decentralization and theoretically operate without the need for external oversight.  

In the hourly time frame, Bitcoin price stabilized under $27,000 after the framework was adopted by G20 nations.