During a recent G20 Finance Ministers and Central Bank Governors meeting in Morocco, the intergovernmental forum unanimously agreed to adopt the regulatory roadmap for digital assets that was proposed by the International Monetary Fund (IMF) and Financial Stability Board (FSB). Binance, the largest cryptocurrency exchange in the world, has commended the G20 for choosing to adopt the regulations, saying that a coordinated global approach will increase utility, innovation, and consumer trust.
The G20, which includes 19 of the world’s largest economies, the European Union, and the African Union, met on Oct. 13 and accepted the IMF’s and FSB’s jointly proposed regulations, which they laid out in a September report titled, “IMF-FSB Synthesis Paper: Policies for Crypto-Assets,” CoinTelegraph reported. The G20 called for “swift and coordinated implementation” of the roadmap, which includes policy frameworks, information sharing, and outreach to non-G20 members.
Binance called the adoption of the IMF-FSB paper a major step toward “unifying the approach to crypto-assets among the world’s biggest economies and beyond.” In a blog post, Binance said that if the framework is implemented successfully, stakeholders will have a solid foundation from which they can guarantee financial stability and consumer protection within the digital asset ecosystem, providing confidence to regulators and industry participants and allowing them to innovate collaboratively.
Binance highlighted the “borderless” nature of blockchain, which allows anyone in the world with an internet connection to access the benefits of the digital asset ecosystem, but said that inconsistent regulations in different jurisdictions poses a challenge. Binance said that the financial sector is heavily regulated “for good reasons,” but different countries have taken different stances on issues like categorizing and taxing digital assets and determining which regulator should have authority over the industry. Binance said the “responsible path forward” is for global leaders to collaborate and strive to root “this new cross-border digital-asset ecosystem into national and global regulatory frameworks.” If successful, Binance said, the digital asset ecosystem can grow “harmoniously” with existing institutions and practices.
Regulators around the world have been calling for a coordinated approach to regulating the crypto industry, including Mário Centeno, the governor of Portugal’s central bank, and the executive director of strategy, policy and control at the German Federal Financial Supervisory Authority, who has pointed out inconsistencies in different jurisdictions’ approaches to regulating crypto, CoinTelegraph reported.