G20 Countries Welcome Stablecoin Activities Regulation


Some interesting agendas are discussed at the G20 Indonesia, such as crypto assets. In the FMCBG meeting (17/10), Finance ministers and central bank governors of G20 countries again discussed the game rules in the crypto ecosystem supported by underlying assets, namely stablecoin.

“We welcome the ongoing work by the Financial Stability Board (FSB) and international standard setters to ensure that the crypto asset ecosystem, including so-called stablecoin, is closely monitored and subject to regulation, and strong oversight to mitigate potential risks to financial stability, ” said the minutes of the FMCBG meeting released Monday (17/11/2022).

The G20 also welcomed the FSB’s proposed approach to building a comprehensive international framework for the regulation of crypto asset activity based on the principle of ‘equal activity, equal risk, and equal regulation’.

In addition, the G20 also appreciates the FSB consultative report on the review of high-level recommendations for regulation, supervision, and oversight of the “global stablecoin” regulation.

According to the FMCBG minutes, the G20 also supported the FSB consultation report to promote international consistency of regulatory and supervisory approaches to crypto asset activities and markets.

“It is critical to build public awareness of risk, to strengthen regulatory outcomes, and to support a level playing field while leveraging innovation,” the G20 leaders said in the minutes.

Furthermore, this effort needs to be carried out because the G20 is determined to strengthen the global financial sector through increased risk monitoring and through optimizing the benefits of technology and digitalization.

“The G20 continues to discuss highly competent issues of crypto asset legislation to improve risk monitoring and make efforts that yield benefits,” he said during a virtual 4th FMCBG press conference, Friday (14/10/2022).

Previously, Bank Indonesia (BI) Governor Perry Warjiyo said that at this meeting the finance minister and central bank governor also discussed the latest features of crypto assets to weigh the risks and benefits.

Perry revealed the FSB had submitted several consultative reports related to crypto assets.

The first report on the crypto asset market and activity include recommendations for regulatory oversight and over the set of crypto assets and their markets to promote financial stability. While the second FSB report contains global stablecoins.

The report consists of a revised proposal for stablecoin regulation to identify gaps that can be addressed by the existing framework taking into account market rationale and policy developments.

“In this process, G20 members welcome the FSB in this process and it is very possible for better calibration,” he said.

In addition, the G20 also received final guidance from BIS CPMI and IOSCO confirming that principles for financial market infrastructure apply to the importance of systematic stablecoin regulation.