Ayman Alsayari, Governor of the Saudi Central Bank (SAMA), has expressed concern over the risks associated with cryptocurrencies and their brokers. Speaking at the G20 Finance Ministers and Central Bank Governors (FMCBG) meeting in Morocco, Alsayari emphasized the need for “good supervision” of digital assets to mitigate these risks.
Call for Effective Regulations
Alsayari urged the International Monetary Fund (IMF) to play a crucial role in supervising cryptocurrencies. Recognizing the potential threats they pose to financial stability, the IMF and global financial regulators have taken steps to coordinate measures to combat these risks.
“A comprehensive policy and regulatory response for crypto-assets is necessary to address the risks of crypto-assets to macroeconomic and financial stability,”
The IMF and the Financial Stability Board (FSB) have released a paper recommending the licensing of crypto service providers and the implementation of anti-money laundering and counter-terrorist financing (AML/CFT) standards set by the Financial Action Task Force (FATF).
Global Economy and Inflation
In addition to his concerns about cryptocurrencies, Governor Alsayari also highlighted the significant economic downturn caused by rising inflation rates. This issue further exacerbates the need for effective supervision and regulation of digital assets.
The recent G20 FMCBG meeting in Marrakech, Morocco unveiled the G20 Roadmap for regulating crypto assets and reforming multilateral development banks (MDBs). This detailed roadmap takes into consideration the impact on Emerging Markets and Developing Economies (EMDEs) and emphasizes the need for regulations rather than an outright ban on cryptocurrencies.
“This detailed and action-oriented Roadmap is essential to achieve our common goals of macro-economic and financial stability and to ensure effective, flexible, and coordinated implementation of the comprehensive policy framework for crypto assets,”
The G20 communique acknowledges the importance of global policy and regulatory frameworks in achieving stability and fostering an environment that encourages responsible use of digital assets.
