India has asked the International Monetary Fund (IMF) and the Financial Stability Board (FSB) to prepare a “consolidated document” on crypto assets as part of the G20 Finance Ministers and Central Bank Governors Meeting, which India is chairing, and The request was made.” This will help formulate a coordinated and comprehensive policy approach to crypto assets,” the Indian finance ministry said.
India Requests Technical Paper on Crypto from IMF and FSB
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On Saturday, following the first two-day G20 Finance Ministers and Central Bank Governors meeting in Bengaluru on February 24 and 25, the Indian government released the “G20 Chairman’s Summary and Outcome Document” The G20 Chairman’s Summary and Outcome Document was released. Crypto regulation was among the topics discussed.
During a panel discussion on cryptocurrency regulation as part of the G20 meeting, India requested the International Monetary Fund (IMF) and the Financial Stability Board (FSB) to jointly prepare a technical paper on crypto assets. According to the summary document
the IMF and FSB should jointly submit a synthesis paper integrating macroeconomic and regulatory perspectives on crypto assets in September 2023.
The document adds that the FSB “finalize by July 2023 high-level recommendations on the regulation, supervision, and oversight of global stablecoins and on the regulation, supervision, and oversight of crypto asset markets and activities.” In addition, the Bank for International Settlements (BIS) is to “submit a report on analytical and conceptual issues related to crypto assets and possible risk mitigation strategies.”
The Indian Ministry of Finance also issued a statement on Saturday after the G20 Finance Ministers and Central Bank Governors meeting.” To complement the ongoing dialogue on the need for a policy framework, the Indian Presidency proposed a joint technical paper by the International Monetary Fund (IMF) and FSB that would integrate macroeconomic and regulatory perspectives on crypto assets,” the Finance Ministry said, elaborating.
This would help develop a coordinated and comprehensive policy approach to crypto assets.
India aims to expand the scope of G20 discussions on crypto assets to encompass not only financial integrity concerns, but also macroeconomic impacts and the proliferation of cryptocurrencies across the economy, the Indian Finance Ministry statement further noted.
Indian Finance Minister Nirmala Sitharaman has been saying for months that crypto will be a priority in the G20 discussions under India’s chairmanship. She said last October that India wants to reach a technology-driven regulatory framework or standard operating procedure (SOP) for crypto assets.Sitharaman has also repeatedly promoted international cooperation on crypto.
This week, the IMF Executive Board issued guidance to help countries develop effective crypto policies. In addition to recommending that “crypto assets should not be given official or legal tender status,” the IMF Executive Board “agreed that a strict ban is not the first best option and that targeted restrictions can be applied.”
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