US President Joe Biden and other Group of 20 (G20) leaders call for international cryptocurrency regulations. According to a G20 White House statement, leaders of the world’s 20 largest economies agreed at a recent summit in Indonesia that regulation in the crypto space needs to be stepped up. “It is critical to raise public awareness of risk, strengthen regulatory outcomes and support a level playing field while reaping the benefits of innovation.
The Group supports the efforts of the Financial Stability Board (FSB), which has recommended a framework for the international regulation of cryptocurrencies, stating that digital assets and intermediaries that perform the same function as their traditional financial counterparts should be subject to equivalent regulations.
“We applaud the efforts made by the FSB and other international standard-setters to guarantee that the ecosystem of crypto-assets, including so-called stablecoins, is strictly regulated, supervised, and monitored to reduce any possible dangers to financial stability. We applaud the strategy put forth by the FSB to establish an extensive global framework for the supervision of crypto-asset activities based on the tenet of “same activity, same risk, same regulation.” Recommendations for the Regulation, Supervision, and Monitoring of “Global Stablecoin” Arrangements. We also welcome the FSB Consultation Report on Promoting International Coherence in Supervisory and Regulatory Approaches to Crypto Asset Markets and Activities.
According to the statement, the Group also supports the guidance issued in July by the Committee on Payments and Market Infrastructure (BIS COPMI) of the Bank for International Settlements and the Committee and International Organization of Securities Commissions (IOSCO). The two groups said that the Principles for Financial Market Infrastructures, an existing international standard for financial markets, apply to stablecoin transactions.