India being the G20 President has issued a note with certain action plans providing a roadmap to IMF and FSB to be incorporated in their action plans. This note serves as a crucial contribution to the IMF-FSB Synthesis Paper, which will include the Roadmap on Establishing a Global Framework for Crypto Assets, by identifying gaps (such as the need to consider macro-financial implications and incorporate the EMDE perspectives), Focusing resources to prevent duplication across organizations.
G20 meeting continues in which India is working closely with G20 countries to develop SOP on crypto regulation, and this has led India to submit its Presidency Note on Crypto to incorporate its suggestions in the formulation of global crypto rules. has been issued.
In 2020, FSB has given 10 high-level suggestions regarding crypto regulation, which included global crypto regulation and supervision, etc. The Presidency Note issued by India indicated the implementation of these suggestions Global Crypto Regulation Framework.
The note is important as it focuses on the broader view of India ahead of the release of the synthesis paper by the Financial Stability Board (FSB) and the International Monetary Fund (IMF) that can be used in the Global Crypto Regulation. The synthesis paper may be released at the end of August. The IMF has also announced that it will release a synthesis paper on the Leaders' Summit.
The note calls for expanding access to all jurisdictions to create awareness about the risks of crypto, including non-G-20 members and the IMF and FSB.
On India's proposal to regulate crypto assets, G20 members are agreeing that any action on crypto assets should be taken globally. The G20 and its members agree that it will not be possible for a single country to deal with crypto assets. The G20 countries have also supported India's initiative on strengthening multilateral development banks and managing global debt vulnerabilities.
The guideline has been advanced by international organizations (IOs) and standard-setting bodies (SSBs) in a number of proposals. The FSB has created suggestions that address financial stability, consumer concerns, and other risks resulting from crypto assets in order to effectively regulate, supervise, and oversee activity involving these assets.
Significant work has already been done to create the crucial regulatory standards needed for the cryptocurrency business. Despite existing guidelines and standards, cooperation is required to ensure uniform application across diverse jurisdictions.
The objective of having a global and shared roadmap is to assist nations in implementing a minimum policy standard for crypto assets that will:
Protect countries' macroeconomic, financial stability, and financial integrity;
Offer appropriate investor and user awareness, education, and protections; and
Facilitate the advancement of the underlying technology and promote innovations in the financial sector.
The Presidency Note mainly identifies certain key issues that may be covered more thoroughly in the Roadmap as a high-level contribution to the IMF-FSB Synthesis Paper.