The globally influential Group of Twenty (G20) has recently voiced its appreciation for the recommendations of the Financial Stability Board (FSB) on crypto asset activities and global stablecoin arrangements. This was revealed by Nirmala Sitharaman, Finance Minister of India, as the nation currently exercises its rotational G20 presidency.
The FSB had previously put forth a call for stricter regulations on the preservation of crypto client assets and the resolution of conflicts of interest. This call came in light of multiple allegations of foul conduct in the cryptosphere in the previous eventful year. Traditional finance companies have been in favor of these proposed regulations, whereas crypto behemoths such as Binance and Coinbase have expressed concern that such regulations could hinder innovation.
It bears mentioning that stablecoin regulation represents a key point of divergence in views between the G7 and the G20. However, Sitharaman declared that the G20 is supportive of the FSB’s recommendations on stablecoin oversight.
Of particular interest is the fact that these declarations were made after the third summit of Finance Ministers and Central Bank Governors. This summit took place recently in Gandhinagar, Gujarat, a city located in eastern India. Not only was a presidency note on crypto presented during these in-depth discussions, it was confirmed by Sitharaman that this note will play a crucial role in determining the direction of future work in this domain.
The actual content of this note remains a mystery, although it has been speculated by local sources that it contains a summary of work done by various countries and institutions in the arena of crypto regulation.
This note was deemed by the members of the G20 to be an invaluable resource in fleshing out a cohesive, global policy and regulatory framework for cryptocurrency. The future of these regulations, however, still hangs in the balance. It is yet to be seen if the FSB recommendations, and the combined synthesis paper of the FSB and International Monetary Fund (IMF) scheduled for September, will convince the G20 nations to implement a template for crypto rules globally.
Source: Coindesk
