The International Monetary Fund (IMF) has teamed up with the Bank for International Settlements (BIS) and the Financial Stability Board (FSB) to create a global cryptocurrency regulatory framework.
The three massive financial institutions announced on Friday they aimed to publish papers and recommendations to establish the framework for G20 nations.
Their announcement outlines a recent meeting with officials from central banks and G20 nations. In the document, the FSB plans to release recommendations in July on regulating global stablecoins as well as crypto assets, among others.
The paper read: “We look forward to the IMF-FSB Synthesis Paper which will support a coordinated and comprehensive policy approach to crypto-assets, by considering macroeconomic and regulatory perspectives, including the full range of risks posed by crypto assets.”
Additionally, the BIS will submit its findings on risks associated with digital assets and how to avoid them. Officials from G20 nations will also appoint a task force to evaluate cryptocurrencies further.
The news comes amid a wave of support for central bank digital currencies and crypto alternatives from global powers, including the United Kingdom, European Union, Japan, South Korea, Fiji, Tonga, and El Salvador, among others.
On Friday, global leaders held an event in Bengaluru, India to discuss global regulations for digital assets. United States treasury secretary Janet Yellen said in a statement to Reuters that it was “critical” to deploy strong regulatory frameworks.
Despite this, Yellen did not advocate bans on cryptocurrencies, adding: “We haven’t suggested outright banning of crypto activities, but it is critical to put in place a strong regulatory framework. We’re working with other governments.”
