India Recommends Addressing Digital Assets Risks For Developing Economies For G20 Crypto Pathway
The Group of Twenty (20) presidency-holder nation, India, has expressed its support for Financial Stability Board’s (FSB) suggestions for a global crypto framework appearing in July. They stated the necessity of addressing the concerns and risks of digital assets and their dealings for developing economies.
India Releases Presidency Notes
India published a presidency note on August 1 requiring input for the pathway to the global crypto framework. The document released by the country agrees with the guidelines offered by FSB, International Monetary Fund (IMF), and Financial Action Task Force (FATF).
The presidency note adds to the suggestion list, emphasizing the impact of digital asset trading and risks on developing economies. Although the IMF already has specific guidelines specifying digital assets and developing economies, India urges FSB to implement them too.
Further, the nation also calls for transcending to all jurisdictions and generating awareness about potential risks. The awareness-generation program should commence with countries adopting crypto increasingly. The future regulatory approach should be extended to the digital economy surpassing the G20 scope.
The note also reveals that the IMF’s and FSB’s so-called Synthesis Paper is due for release by the end of August. It contains a broad roadmap for G20 to consider and walk on.
The FSB published its crypto and stablecoin guidelines in July. It states the vitality of segregation between clients’ digital assets and the crypto exchange’s own funds. All the related functions should be separate to prevent conflict of interest.
Further, tight cross-border cooperation and oversight need to be practiced. The guidelines also state that stablecoin issuers should get a national license in any jurisdiction before operating there. Indian Economic Affairs Secretary Ajay Seth talked to reporters in Gandhinagar, “The thinking is that there should be a bare minimum – the two high-level recommendations that have come say there should be a bare minimum; beyond that if any jurisdiction wants to be more stringent based on its own circumstances, it should be doing so. But nobody should go below the bare minimum.”
India Hopes For A Transparent and Clear Discussion
Indian Finance Minister Nirmala Sitharaman stated on July 18, “Unless the discussions get to some kind of crystal-clear thoughts, it will be very difficult for me to guess now as to what kind of regulations they talk about. So we will have to wait until the next meeting, the Summit, and post the Summit when we go to Marrakesh.“
India hopes to address its concerns regarding crypto and take the crypto discourse forward with its G20 presidency.
