India Asks IMF and FSB to Develop Technical Paper on Crypto Assets
India has asked the International Monetary Fund (IMF) and Financial Stability Board (FSB) to develop "a synthesis paper" on crypto assets during the G20 meeting of finance ministers and central bank governors under India’s presidency. "This would help in the formulation of a coordinated and comprehensive policy approach to crypto assets," the finance ministry of India said.
The G20 Chair releases the "Summary and Outcome Document"
The government of India released the "G20 Chair’s Summary
and Outcome Document" on Saturday, following the first two-day G20 meeting
of finance ministers and central bank governors in Bengaluru on February 24–25.
Crypto regulation was widely discussed among the topics.
During the G20 meeting panel discussion on cryptocurrency
regulation, India requested the International Monetary Fund (IMF) and
Financial Stability Board (FSB) to develop a technical paper on crypto
assets. According to the summary document:
"In September 2023, the IMF and the FSB will jointly submit
a synthesis paper integrating the macroeconomic and regulatory perspectives of
crypto assets."
The document further adds that the FSB is "to finalize its
high-level recommendations on the regulation, supervision, and oversight of
global stablecoins; and high-level recommendations on the regulation,
supervision, and oversight of crypto-asset markets and activities by July
2023." In addition, the Bank of International Settlements (BIS) is
"to submit a report on analytical and conceptual issues and possible risk
mitigation strategies related to crypto assets."
The Union Finance Ministry of India also released a statement on
Saturday following the G20 meeting of finance ministers and central bank governors.
"To complement the ongoing dialogue on the need for a
policy framework, the Indian presidency has proposed a joint technical paper by
the International Monetary Fund (IMF) and the FSB, which would synthesize the
macroeconomic and regulatory perspectives of crypto assets," the finance
ministry stated. It added:
"This would help in the formulation of a coordinated and
comprehensive policy approach to crypto assets."
India Aims to Expand the Scope of Crypto Assets
India aims to expand the scope of the G20 discussion on crypto
assets to include not only financial integrity concerns but also the
macroeconomic implications and the widespread adoption of cryptocurrencies
across the economy, according to the statement.
The Union Finance Minister of India, Nirmala Sitharaman, has
reiterated for several months that crypto will be a priority in G20 discussions
under India’s presidency. In December last year, she said India is looking
forward to building policy consensus or a standard operating procedure (SOP)
for crypto assets. Sitharaman has also repeatedly pushed for international cooperation on crypto.
The IMF executive board has released guidance to help countries
develop effective crypto policies this week. Besides recommending that
"crypto assets should not be granted official currency or legal tender
status," the IMF executive board directors "agreed that strict bans
are not the first-best option but that targeted restrictions could apply."
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