High-Level Regulatory Recommendations of the IMF-FSB Document


Crypto and blockchain technology have taken the financial world by storm, offering innovative ways to conduct transactions and invest. However, this rapidly evolving industry also poses unique challenges for regulators and authorities worldwide. To maintain financial stability and protect consumers, high-level recommendations for the regulation, supervision, and oversight of crypto-asset activities and markets have been proposed. In addition, these recommendations extend to the regulation of global stablecoin arrangements, which have gained significant attention in recent years. In this blog post, we’ll delve into these essential recommendations and their implications for the crypto landscape.

High-Level Recommendations for Crypto-Asset Activities and Markets

Recommendation 1: Regulatory Powers and Tools

The first recommendation emphasises the importance of authorities having the necessary powers, tools, and resources to regulate and supervise crypto-asset activities effectively. This is crucial to ensure that relevant laws and regulations are enforced appropriately.

Recommendation 2: General Regulatory Framework

The second recommendation highlights the need for a comprehensive regulatory framework for crypto-assets. It should be applied proportionately to the financial stability risks posed by different crypto-asset activities, adhering to the principle of “same activity, same risk, same regulation.”

Recommendation 3: Cross-Border Cooperation

To foster effective communication and regulatory consistency, authorities should cooperate and coordinate with each other, both domestically and internationally.

Recommendation 4: Governance

Crypto-asset issuers and service providers should establish and disclose a governance framework with clear lines of responsibility and accountability. This framework should be proportionate to the risks and complexity of their operations.

Recommendation 5: Risk Management

Crypto-asset service providers must implement effective risk management frameworks that address all significant risks. Authorities should ensure that financial stability risks are appropriately addressed.

Recommendation 6: Data Collection and Reporting

Robust data collection, storage, and reporting frameworks should be in place, with authorities having access to necessary data to fulfil their regulatory mandates.

Recommendation 7: Disclosures

Crypto-asset issuers and service providers must provide comprehensive, clear, and transparent information to users and stakeholders regarding their operations, risk profiles, and financial conditions.

Recommendation 8: Addressing Financial Stability Risks

Authorities should identify and monitor interconnections within the crypto-asset ecosystem and address financial stability risks arising from these interdependencies.

Recommendation 9: Regulation of Service Providers with Multiple Functions

Service providers with multiple functions should be subject to appropriate regulation that addresses the associated risks, including conflicts of interest and separation of functions.

High-Level Recommendations for Global Stablecoin Arrangements

High-Level Recommendations for Global Stablecoin Arrangements

Recommendation 1: Authorities’ Readiness

Authorities should have the necessary powers and resources to regulate and oversee global stablecoin (GSC) arrangements effectively.

Recommendation 2: Comprehensive Oversight

Comprehensive regulatory and supervisory requirements should be applied to GSC arrangements in line with international standards, proportionate to their risks.

Recommendation 3: Cross-Border Cooperation

Authorities should cooperate internationally to ensure comprehensive regulation and supervision of GSC arrangements across borders and sectors.

Recommendation 4: Governance Structures

GSC arrangements should establish clear governance frameworks with accountability for all functions and activities.

Recommendation 5: Risk Management

Effective risk management frameworks should be in place addressing operational resilience, cybersecurity, AML/CFT measures, and “fit and proper” requirements.

Recommendation 6: Data Storage and Access

Robust data collection and storage frameworks should be implemented, with authorities having necessary access.

Recommendation 7: Recovery and Resolution

GSC arrangements should have appropriate recovery and resolution plans.

Recommendation 8: Disclosures

GSC issuers and participants must provide transparent information on governance, conflicts of interest, redemption rights, and more.

Recommendation 9: Redemption Rights and Stabilization

GSC arrangements should guarantee timely redemption, and stability mechanisms, and meet prudential requirements.

Recommendation 10: Conformance with Regulations

GSC arrangements must meet all regulatory requirements before commencing operations in a jurisdiction.

Policy Implementation Roadmap

The increasing adoption of crypto-assets in the global financial system has prompted the development of international standards to guide their regulation and implementation. The IMF and FSB, along with SSBs, have introduced policy approaches to ensure that jurisdictions worldwide adopt comprehensive, consistent, and complementary measures. These approaches aim to promote and oversee the effective implementation of these standards. Additionally, the IMF and FSB, alongside other international organizations and SSBs, have created a flexible and coordinated roadmap for implementing the comprehensive crypto-assets policy framework. Key elements of the roadmap include policy framework implementation, outreach to non-G20 jurisdictions, global coordination, cooperation, information sharing, and addressing data gaps. Progress will be reported at Finance Ministers’ and Central Bank Governors’ meetings, in conjunction with FATF on AML/CFT efforts.

Read more: G20 Discussions on Crypto Regulation


The crypto industry is evolving rapidly, and regulatory authorities are taking proactive steps to ensure its stability and accountability. High-level recommendations provide a roadmap for regulators to navigate this complex landscape, emphasizing cooperation, proportionality, and transparency. As these recommendations are adopted and implemented globally, they will play a vital role in shaping the future of crypto-assets and global stablecoins, promoting financial stability and safeguarding the interests of consumers and stakeholders.

Stay upto date with the latest crypto news on ZebPay blogs. Get started with crypto trading in a flash with ZebPay.

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Each investor must do his/her own research or seek independent advice if necessary before initiating any transactions in crypto products and NFTs. The views, thoughts, and opinions expressed in the article belong solely to the author, and not to ZebPay or the author’s employer or other groups or individuals. ZebPay shall not be held liable for any acts or omissions, or losses incurred by the investors. ZebPay has not received any compensation in cash or kind for the above article and the article is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information.

Start Trading Now