The group of the 20 most advanced countries in the world (G20) has put forward the idea of global regulation of cryptos. Its ambition in this direction has just undergone a new development. The group of countries received recommendations to put their project into action.
G20 Receives CSF Proposals for Global Crypto Regulation
The G20 wants to impose a global framework for cryptos. The Financial Stability Board (FSB), the body that oversees the global financial system, has provided him with ways to achieve this.
The CSF has, in fact, presented to the G20, its recommendations to implement global legislation on cryptos. The documents that compile his suggestions were sent on Monday, July 17, to the group of countries.
In broad outline, these texts propose, on the one hand, general standards regulating the operation of cryptos on a global scale. The CSF proposals include, on the other hand, provisions specifically concerning stablecoins.
On the latter, the FSB emphasizes the importance for stablecoin issuers to have identifiable and accountable governance bodies. That said, firms managing stablecoins could be required to obtain an operating license in each jurisdiction.
Furthermore, these “high level recommendations” take a clear position on some thorny topics related to cryptos. The first of these concerns issues surrounding the protection of privacy.
CSF regulatory proposals recognize the need to safeguard the privacy of individuals. To achieve this, the body calls on regulators to prevent activities that hinder the identification of responsible entities, especially in DeFi.
The other major issue addressed by the CSF relates particularly to the management of assets by exchanges. For the institution, it is imperative that a distinction be made between user funds and those of these firms.
This measure is relevant to prevent situations of conflict of interest. And for its implementation, the CSF wishes to strengthen cross-border cooperation and monitoring to ensure platform compliance.
Note that an evaluation of the implementation of these recommendations is planned for 2025. Until then, a report on the policies and regulatory issues related to cryptos will be presented to the G20 by the CSF and the IMF.
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