India has asked the International Monetary Fund (IMF) and the Financial Stability Board (FSB) to develop a “summary paper” on cryptoassets as part of the G20 Finance Ministers and Central Bank Governors meeting chaired by India. “This will help in developing a coordinated and comprehensive policy approach to crypto assets,” the Indian Ministry of Finance said.
India asks IMF and FSB for white paper on cryptocurrencies
The Indian government released its “G20 Chairman’s Summary and Outcome Document” on Saturday following the first two-day meeting of G20 finance ministers and central bank governors held in Bangalore on February 24-25. Cryptocurrency regulation was among the topics discussed.
During a G20 cryptocurrency regulation panel discussion, India approached the International Monetary Fund (IMF) and the Financial Stability Board (FSB) to jointly prepare a white paper on crypto assets. According to the final document:
The IMF and FSB will jointly present a synthesizing document integrating the macroeconomic and regulatory aspects of cryptoassets in September 2023.
The document adds that the FSB should “finish its high-level recommendations on the regulation, supervision and oversight of global stablecoins; and high-level recommendations on the regulation, supervision and supervision of the markets and activities of crypto assets by July 2023.” In addition, the Bank for International Settlements (BIS) is to “submit a report on analytical and conceptual issues and possible strategies to mitigate the risks associated with crypto assets.”
The Indian Ministry of Finance also released a statement on Saturday following the meeting of G20 finance ministers and central bank governors. “To complement the ongoing dialogue on the need for a policy framework, the Indian Presidency has invited the International Monetary Fund (IMF) and the FSC to prepare a joint white paper summarizing the macroeconomic and regulatory aspects of cryptoassets,” it said in a statement. The ministry stated, specifying:
This will help develop a coordinated and integrated approach to crypto asset policy.
India aims to expand the scope of the G20 crypto asset discussion to cover not only financial integrity issues, but also the macroeconomic implications and widespread adoption of cryptocurrencies in the economy, the Indian Ministry of Finance said in a statement.
India’s Finance Minister Nirmala Sitharaman has been saying for months that cryptocurrency will be a priority in India’s G20 discussions. She said last October that India is looking to develop a technology-based regulatory framework or standard operating procedure (SOP) for crypto assets. Sitharaman has also repeatedly called for international cooperation in the field of cryptocurrencies.
This week, the IMF Executive Board released guidance to help countries develop effective crypto policies. In addition to recommending that “cryptoassets should not be granted official currency or legal tender status,” the IMF’s executive board “agreed that strict bans are not the best option, but targeted restrictions may apply.”
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