India's G20 Presidency: Advocates stronger crypto regulation for developing economies
India's proactive stance as the G20 presidency reflects the growing concerns surrounding the risks associated with digital assets in the global economy. By advocating for inclusive and robust regulation, India aims to safeguard the interests of developing economies and create a safer environment for crypto transactions worldwide.
cryptocurrency
Highlights
- India has proposed some additional recommendations to enhance the effectiveness of the global crypto roadmap in the presidency note released on 1 August
- This move aims to ensure that the specific needs and challenges faced by these countries are taken into account during regulatory discussions
India, currently holding the G20 presidency, has emphasised the importance of addressing the risks associated with digital assets in developing economies. The country has shown support for the recommendations proposed by the Financial Stability Board (FSB) in July, advocating for a comprehensive global crypto framework.
In a recent presidency note, India urged the FSB to consider the specific circumstances of developing countries while implementing guidelines for cryptocurrencies. The note also highlights the need for creating awareness of crypto-related risks and extending regulatory efforts beyond the G20 scope.
India's additional suggestions to strengthen the global crypto framework
The presidency note released on 1 August aligns with the guidelines set forth by the FSB, Financial Action Task Force (FATF), and International Monetary Fund (IMF). However, India has proposed some additional recommendations to enhance the effectiveness of the global crypto roadmap. Notably, the country stresses the importance of including developing economies in the IMF's potential guidelines for cryptocurrencies. This move aims to ensure that the specific needs and challenges faced by these countries are taken into account during regulatory discussions.
FSB to release synthesis paper as G20 considers comprehensive crypto roadmap
At the end of August, the FSB is set to release its Synthesis Paper, providing a broad roadmap for the G20 to consider. This paper will serve as a crucial reference point for crafting a comprehensive global framework for cryptocurrencies and stablecoins.
In July, the FSB had already published its guidelines for crypto and stablecoins, emphasising the need for stringent regulation in the industry. Key measures include mandating crypto platforms to segregate clients' digital assets from their own funds and obtaining a national license for stablecoin issuers before operating in any jurisdiction.
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