editorial
The International Monetary Fund (IMF) and the Financial Stability Board (FSB) have released policy and regulatory recommendations aimed at addressing the risks associated with crypto-assets. The organizations highlight that while crypto-assets have been around for over a decade, they have become increasingly complex and volatile.
Currently, there are limited direct connections between crypto-assets and systemically important financial institutions and core financial markets. However, the IMF warns that if crypto-assets gain traction for payments or retail investments, they could pose systemic risks in certain jurisdictions.
The IMF outlines key elements of an appropriate policy response, including considerations for macroeconomics, legalities, financial integrity, and implications for monetary and fiscal policies. Additionally, the FSB and standard-setting bodies have published regulatory and supervisory recommendations to address financial stability, market integrity, investor protection, and other risks associated with crypto-assets.
In response to a request from the Indian G20 Presidency, the IMF and the FSB have collaborated to synthesize their policy recommendations and standards. The collective recommendations provide comprehensive guidance for authorities to address the risks posed by crypto-asset activities and markets, including stablecoins and decentralized finance (DeFi).
The paper does not establish new policies but rather describes how the policy and regulatory frameworks developed by the IMF, FSB, and standard-setting bodies interact with each other. The risks to macroeconomic stability and financial stability posed by crypto-asset activities are examined, and the paper presents policy responses in areas such as macro-financial policies, financial stability regulation, and other relevant policies and regulations.
The paper concludes with an implementation roadmap that covers planned and ongoing work to implement crypto-asset policy frameworks. The roadmap aims to enhance institutional capacity, global coordination, cooperation, and information sharing, as well as address data gaps to better understand the ever-changing crypto-asset ecosystem.
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