IMF, FSB release joint policy recommendations for crypto assets
Update (Sept. 7, 2023, 11AM UTC): This article has been updated to add more information on the policy paper.
The International Monetary Fund (IMF) and the Financial Stability Board (FSB) have published a joint paper containing policy recommendations at the request of the Indian G20 presidency. The organizations have created the paper to combine the standards and consolidate collective recommendations to provide guidance and help various jurisdictions address risks associated with crypto asset activities.
The policy paper includes recommendations for regulating activities related to stablecoins and decentralized finance (DeFi). It also describes how regulatory frameworks and policies developed by both the IMF and the FSB can interact and fit together. However, it does not set or establish new policies, recommendations or expectations for relevant authorities.
According to the paper, stablecoins which are created with the intention of holding a stable value can abruptly become volatile and hold a huge risk to financial stability. Meanwhile, when it comes to DeFi protocols, the paper argued that while the processes used to provide DeFi services may be different from traditional financial platforms, DeFi “does not differ substantially from the tranditional financial system in the functions it performs.”
Related: Binance CEO CZ forecasts DeFi outgrowing CeFi in the next bull run
The paper also noted that as DeFi attempts to replicate some functions of the traditional financial system, it also may amplify and inherit the risk and vulnerabilities in traditional systems. This may include liquidity and maturity mismatches, operational fragilities, interconnectedness and leverage. The paper wrote:
“Claims of decentralisation often do not hold up to scrutiny. Presently, DeFi may exhibit unclear, opaque, untested or easy-to-manipulate governance frameworks that may expose users to risks.”
The report also reaffirmed the IMF’s stance about a blanket ban on crypto. On June 22, the IMF pointed out that banning crypto may not be effective in the long run. The IMF said that instead of banning crypto, various authorities should focus on addressing what drives the demand for crypto, including the consumers’ needs for digital forms of payment.
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Politics
Norman Tebbit: Former Tory minister who served in Margaret Thatcher’s government dies aged 94
Norman Tebbit, the former Tory minister who served in Margaret Thatcher’s government, has died at the age of 94.
Lord Tebbit died “peacefully at home” late on Monday night, his son William confirmed.
One of Mrs Thatcher’s most loyal cabinet ministers, he was a leading political voice throughout the turbulent 1980s.
He held the posts of employment secretary, trade secretary, Chancellor of the Duchy of Lancaster and Conservative party chairman before resigning as an MP in 1992 after his wife was left disabled by the Provisional IRA’s bombing of the Grand Hotel in Brighton.
He considered standing for the Conservative leadership after Mrs Thatcher’s resignation in 1990, but was committed to taking care of his wife.
Margaret Thatcher and Norman Tebbit in 1987 after her election victory. Pic: PA
Tory leader Kemi Badenoch called him an “icon” in British politics and was “one of the leading exponents of the philosophy we now know as Thatcherism”.
“But to many of us it was the stoicism and courage he showed in the face of terrorism, which inspired us as he rebuilt his political career after suffering terrible injuries in the Brighton bomb, and cared selflessly for his wife Margaret, who was gravely disabled in the bombing,” she wrote on X.
“He never buckled under pressure and he never compromised. Our nation has lost one of its very best today and I speak for all the Conservative family and beyond in recognising Lord Tebbit’s enormous intellect and profound sense of duty to his country.
“May he rest in peace.”
Lord Tebbit and his wife Margaret stand outside the Grand Hotel in Brighton. Pic: PA
Tory grandee David Davis told Sky News Lord Tebbit was a “great working class Tory, always ready to challenge establishment conventional wisdom for the bogus nonsense it often was”.
“He was one of Thatcher’s bravest and strongest lieutenants, and a great friend,” Sir David said.
“He had to deal with the agony that the IRA visited on him and his wife, and he did so with characteristic unflinching courage. He was a great man.”
Reform leader Nigel Farage said Lord Tebbit “gave me a lot of help in my early days as an MEP”.
He was “a great man. RIP,” he added.
Lord Tebbit as employment secretary in 1983 with Mrs Thatcher. Pic: PA
Born to working-class parents in north London, he was made a life peer in 1992, where he sat until he retired in 2022.
Lord Tebbit was trade secretary when he was injured in the Provisional IRA’s bombing in Brighton during the Conservative Party conference in 1984.
Five people died in the attack and Lord Tebbit’s wife, Margaret, was left paralysed from the neck down. She died in 2020 at the age of 86.
Before entering politics, his first job, aged 16, was at the Financial Times where he had his first experience of trade unions and vowed to “break the power of the closed shop”.
He then trained as a pilot with the RAF – at one point narrowly escaping from the burning cockpit of a Meteor 8 jet – before becoming the MP for Epping in 1970 then for Chingford in 1974.
Lord Tebbit during an EU debate in the House of Lords in 1997. Pic: PA
As a cabinet minister, he was responsible for legislation that weakened the powers of the trade unions and the closed shop, making him the political embodiment of the Thatcherite ideology that was in full swing.
His tough approach was put to the test when riots erupted in Brixton, south London, against the backdrop of high rates of unemployment and mistrust between the black community and the police.
He was frequently misquoted as having told the unemployed to “get on your bike”, and was often referred to as “Onyerbike” for some time afterwards.
What he actually said was he grew up in the ’30s with an unemployed father who did not riot, “he got on his bike and looked for work, and he kept looking till he found it”.
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