IMF-FSB Synthesis Paper: Policies for Crypto-Assets
The International Monetary Fund (IMF) and the Financial Stability Board (FSB) have advanced policy and regulatory recommendations to identify and respond to macroeconomic and financial stability risks associated with crypto-assets.
Crypto-assets have been in existence for more than a decade and have displayed significant volatility. Alongside their volatility, crypto-asset activities have also grown in complexity. So far, direct connections between crypto-assets and systemically important financial institutions, core financial markets, and market infrastructures have been limited. Nevertheless, they have the potential to emerge as a source of systemic risk in specific jurisdictions if they gain traction for payments or retail investments. The IMF has outlined key elements of an appropriate policy response including macroeconomic, legal and financial integrity considerations and implications for monetary and fiscal policies. In parallel, the FSB and standard-setting bodies (SSBs) have published regulatory and supervisory recommendations and standards to address financial stability, financial integrity, market integrity, investor protection, prudential and other risks derived from crypto-assets.
At the request of the Indian G20 Presidency, the IMF and the FSB have developed this paper to synthesise the IMF’s and the FSB’s (alongside SSBs’) policy recommendations and standards. The collective recommendations provide comprehensive guidance to help authorities address the macroeconomic and financial stability risks posed by crypto-asset activities and markets, including those associated with stablecoins and those conducted through so-called decentralised finance (DeFi).
This paper describes how the policy and regulatory frameworks developed by the IMF and the FSB (alongside SSBs) fit together and interact with each other, but it does not establish new policies, recommendations or expectations for relevant member authorities.
The paper looks at the key risks to macroeconomic stability, financial stability, and other areas (such as legal, financial integrity and market integrity related risks), posed by crypto-asset activities. It then presents policy responses to these risks in the areas of:
financial stability regulation; and
other policies and regulation.
The paper concludes with an implementation roadmap. The roadmap includes planned and ongoing work related to the implementation of crypto-asset policy frameworks, which taken together seek to: build institutional capacity beyond G20 jurisdictions; enhance global coordination, cooperation, and information sharing; and address data gaps necessary to understand the rapidly changing crypto-asset ecosystem.
Policy Implementation Roadmap
|Implementation of policy frameworks|
|FSB policy work on DeFi and multifunction crypto-asset intermediaries||FSB|
|SSBs continue to examine how their standards apply to crypto-assets and stablecoin arrangements||SSBs|
|Monitoring of risks posed by crypto-assets and stablecoin arrangements||IMF, FSB, Standard-Setting Bodies|
|Implementation of FATF standards for virtual assets||FATF|
|IMF to integrate crypto-asset policies into Article IV assessments and FSAP where suitable1||IMF|
|IMF and World Bank to integrate recommendations for a comprehensive framework for crypto-assets as part of technical assistance and capacity building||IMF, World Bank|
|Outreach beyond G20 jurisdictions|
|IMF and FSB to engage with a wider set of jurisdictions||IMF and FSB|
|IMF to prepare a program for outreach through IMF regional training centres||IMF|
|FATF support, guidance, and training for countries where implementation is lagging, publicly identify steps taken to implement the standard in jurisdictions with materially important crypto-asset activity.||FATF|
|Global coordination, cooperation, and information sharing|
|FSB to continue to act as a hub for information sharing and regulatory and supervisory coordination for crypto-asset activities and global stablecoin arrangements||FSB, together with all International Organisations and Standard-Setting Bodies|
|Cross-border regulatory coordination for GSCs in EMDEs||FSB|
|Authorities’ responsibilities for stablecoin arrangements under the Principles for Financial Market Infrastructure (PFMI)||CPMI-IOSCO|
|Addressing data gaps|
|IMF, with support of other IOs and SSBs, to develop a common framework for addressing data gaps and collect “test data” on crypto-assets||IMF|
1 For FSAPs in EMDEs the exploration of the inclusion of crypto assets will be done jointly with the World Bank.