September 22, 2023

India makes suggestions for G20 crypto roadmap

India, which currently holds the Group of Twenty (G20) presidency, has supported the Financial Stability Board’s (FSB) recommendations for a global crypto framework published in July. The country also emphasized the necessity of dealing with the risks of digital assets for developing economies.

On Aug. 1, India released its presidency note for input in a roadmap on a global framework for crypto. The document concurs with the guidelines written by the FSB, the Financial Action Task Force (FATF) and the International Monetary Fund (IMF).

However, the note suggests some additions, including an emphasis on developing countries. While the IMF pays attention to developing economies’ specifics in its potential guidelines for crypto, India urges the FSB to implement them as well. It also calls for outreach to all jurisdictions to “generate awareness of risks,” starting from countries with higher crypto adoption and extending the future regulatory approach to the digital economy beyond the scope of the G20.

Related: India negotiates cross-border CBDC payments with global central banks

As revealed in the note, the so-called Synthesis Paper by the IMF and FSB is due to be released at the end of August and provides a broad roadmap to be considered by the G20.

In July, the FSB published its guidelines for crypto and stablecoins. The FSB states that crypto platforms must segregate clients’ digital assets from their own funds and clearly separate functions to avoid conflict of interest, with regulators ensuring tight cross-border cooperation and oversight. The guidelines also include the obligation for stablecoin issuers to obtain a national license in any single jurisdiction before they can operate there.

Magazine: ‘Elegant and ass-backward’. Jameson Lopp’s first impression of Bitcoin