India has asked the International Monetary Fund (IMF) and the Financial Stability Board (FSB) to develop a “synthesis paper” on cryptocurrencies. This request is part of the G20 meeting of finance ministers, central bank governors, and the chairmanship of India. India “This could help in the formulation of a coordinated and comprehensive policy approach for crypto assets,” The Indian Ministry Of Finance said.
India Requests Joint Document on Crypto Assets from IMF & FSB
The Indian government released the “G20 Chairman’s Summary and Outcome Paper” on Saturday following the two-day G20 meeting in Bangalore on February 24-25. Crypto regulation was one of the several topics discussed.
During the G20 meeting, a panel discussion on cryptocurrency regulation was held. India requested that the International Monetary Fund (IMF) and the Financial Stability Board (FSB) collaborate on a joint paper about crypto assets. According to the summary document:
The IMF and FSB together will publish a synthesis paper integrating macroeconomic and regulatory outlooks for crypto assets in September 2023.
The document states that the FSB will be responsible “for finalizing its high-level recommendations on the regulation, supervision, and surveillance of global stablecoins; and high-level recommendations on the regulation, supervision, and surveillance of crypto-asset markets and activities by July 2023.” In addition, the Bank for International Settlements (BIS) will “submit a report on analytical and conceptual issues and possible risk mitigation strategies related to crypto assets.”
India’s Finance Ministry made a separate announcement on Saturday following the G20 meeting of finance ministers and central bank governors. “To further the ongoing dialogue on the need for a policy framework, the Indian presidency has proposed a joint IMF and FSB technical paper, which would synthesize the macroeconomic and regulatory outlook for crypto assets,” the financial report stated, elaborating:
This could help in the formulation and implementation of a comprehensive, coordinated policy approach for crypto-assets.
India’s G20 dialogue on crypto assets will now include not only financial integrity issues but also the macroeconomic implications of widespread adoption of cryptocurrency across the economy. This is according to the statement from the Ministry Of Finance. Indian Finance Minister Nirmala Sitharaman has been indicating for months that cryptocurrencies would likely be a focal point in G20 discussions. Under the Indian presidency, she hopes to come up with a technology-driven regulatory framework or standard operating procedure (SOP), to protect crypto assets. Sitharaman has also urged for global cooperation in crypto on several occasions.
This week, the IMF’s executive board issued guidance to assist countries in developing effective crypto policies. Among the recommendations is that “crypto-assets should not be granted official currency or legal tender status,” The IMF executive board directors “agreed that hard bans are not the best option, but specific restrictions may apply.”
What do you think of India’s request for the FSB and IMF to develop a joint paper on cryptocurrencies? Let us know in the comments section.
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