FSB and IMF outline comprehensive approach to identify and respond to macroeconomic and financial stability risks associated with crypto-assets

The IMF-FSB Synthesis Paper on Policies for Crypto-Assets outlines a comprehensive approach to identifying and responding to macroeconomic and financial stability risks associated with crypto-assets. The FSB, mandated by the G20, is responsible for coordinating the development of regulatory and supervisory policies to ensure robust oversight of crypto-asset activities while supporting responsible innovation.
The IMF and the FSB have put forth policy and regulatory recommendations to address these risks. The IMF’s approach emphasizes macroeconomic, legal, and financial integrity considerations and their implications for monetary and fiscal policies. Concurrently, the FSB and SSBs have issued regulatory and supervisory standards to address various risks stemming from crypto-assets.
The joint effort by the IMF and the FSB, at the request of the Indian G20 Presidency, synthesizes their policy recommendations and standards. This comprehensive guidance aims to help authorities tackle macroeconomic and financial stability risks associated with crypto-asset activities, including stablecoins and DeFi, without establishing new policies or expectations.
Crypto-assets present interconnected risks to macroeconomic and financial stability. Their widespread adoption could disrupt monetary policy, evade capital flow management measures, heighten fiscal risks, divert resources from the real economy, and jeopardize global financial stability. These risks can reinforce each other, making price stability harder to maintain and causing destabilizing financial flows.
To address these challenges, comprehensive policy and regulatory responses are crucial. Jurisdictions must protect monetary sovereignty, fortify monetary policy frameworks, manage capital flow volatility, and establish clear tax treatment for crypto-assets. Rigorous regulatory and supervisory oversight can mitigate financial stability and integrity risks while supporting macroeconomic policies.
The FSB, in collaboration with SSBs, has developed global recommendations and standards. These establish a minimum baseline for jurisdictions to address common issues associated with crypto-assets, following the principle of „same activity, same risk, same regulation“.
To safeguard financial integrity and counter criminal misuse, jurisdictions should implement FATF AML/CFT standards for VAs and VASPs. FATF’s guidance on a risk-based approach to VAs is essential for effective implementation.
EMDEs may need tailored measures beyond the global regulatory baseline due to specific risks. These measures should align with country-specific circumstances and vulnerabilities, considering factors like economic size, regulatory priorities, institutional capacity, and financial integration.
The IMF, FSB, and other international organizations and SSBs have developed a roadmap for effective, flexible, and coordinated implementation of the comprehensive policy response. This includes building institutional capacity, enhancing global coordination, cooperation, and information sharing, and addressing data gaps in understanding the evolving crypto-asset ecosystem.