The Financial Stability Board and International Monetary Fund are set to introduce a joint paper on global crypto policy, said FSB Chair Klaas Knot in a Tuesday letter. The paper, which will be presented at this weekend’s G20 Summit, will include a roadmap on the implementation of policy frameworks for crypto, such as global coordination, cooperation, and information sharing.
The paper was requested by India, which holds the G20 presidency until December, in response to the need for a comprehensive policy response to the risks crypto presents. Events such as the bankruptcy of crypto exchange FTX and collapse of the terraUSD stablecoin have highlighted the vulnerabilities that crypto faces, which require close monitoring due to the growing linkages between crypto and the wider financial system.
The paper will also address the amplified macrofinancial risks that emerging markets and developed economies might face, which could raise the need for targeted measures. The FSB called for a global framework in July, and its officials said that these rules won’t need to be completely new.