G20 Fin Mins adopt roadmap on regulating crypto assets

New Delhi: The Finance Ministers of the G20 nations have called for swift and coordinated implementation of the G20 roadmap to deal with the issues related to the crypto assets.

The G20 Roadmap on Crypto Assets adopted by the G20 Finance Ministers was spelt out in a Synthesis Paper prepared jointly by the International Monetary Fund (IMF) and Financial Stability Board (FSB). “We adopt the roadmap proposed in the Synthesis Paper as a G20 Roadmap on Crypto Assets...We call for swift and coordinated implementation of the G20 Roadmap, including implementation of policy frameworks; outreach beyond G20 jurisdictions; global coordination, cooperation and information sharing; and addressing data gaps,” said a communique issued during the fourth meeting of the FMCBG on Thursday.

The G20 Roadmap on crypto assets is a detailed and action-oriented roadmap that will help coordinate global policy as well as develop mitigating strategies and regulations on such assets while also taking into consideration the specific implications on Emerging Markets and Developing Economies (EMDEs). The Finance Ministers and Central Bank Governors (FMCBG) communique drew guidance from the G20 New Delhi Leaders Declaration (NDLD) and benefited significantly from the consensus that was reached at the Leaders’ Summit last month, a press statement issued by the finance ministry said.

The communique was unanimously adopted at the fourth and final meeting of the G20 FMCBG under the Indian Presidency in Marrakesh, Morocco on the sidelines of the IMF-WB Annual Meetings.

With regard to Strengthening Multilateral Development Banks (MDBs), the communique said that the ministers committed themselves to pursuing ambitious efforts to evolve and strengthen MDBs to address the global challenges of the 21st century with a continued focus on addressing the development needs of low and middle-income countries.

“We re-emphasise the need for an additional push for continued and further impetus for ambitious implementation of the recommendations of the G20 Independent Review of MDBs Capital Adequacy Frameworks (CAFs) within MDBs’ own governance frameworks while safeguarding their long-term financial sustainability, with a regular review of the progress of implementation on a rolling basis...,” it said.

The ministers appreciated the work undertaken by the G20 Independent Expert Group (IEG) in preparing Volume 2 of their report. The board of each MDB will be best placed to determine if and when a capital increase is needed in addition to CAF measures to support efforts in addressing global challenges and meeting development needs, it said.

Going forward, it said, “we call on the International Financial Architecture Working Group to deliberate on the IEG recommendations in consultation with MDBs and suggest a way forward for better, bigger and more effective MDBs, including ways to work together better as a system, in our meeting in April 2024.” It called upon the IMF and World Bank to report by our next meeting on the work undertaken to support efforts at enhancing domestic resource mobilisation of EMDEs, considering each country’s circumstances.

On managing global debt vulnerabilities, the ministers called for a swift conclusion of the debt treatment for Ethiopia while welcoming progress in Zambia and Ghana.

Beyond the Common Framework, we also welcome all efforts for timely resolution of the debt situation of Sri Lanka and the ongoing progress and call for its swift conclusion as soon as possible.