India, which is holding the rotational G20 presidency, has lent its support to the Financial Stability Board’s (FSB) recommendations for a global crypto framework, underlining the importance of addressing digital asset risks in developing economies. In a recent move, India published its presidency note to contribute to a roadmap for a global crypto framework, bringing it into line with FSB, FATF, and IMF recommendations.
However, India suggests certain further steps, with a focus on developing nations. India recommends that the FSB follow the IMF’s lead in implementing prospective crypto rules because they take into account the needs of emerging economies.
In particular, the memo urges a concerted effort to inform the public on the dangers of cryptocurrency, starting with countries that have a high rate of cryptocurrency adoption. It argues for a regulatory strategy that goes beyond the G20’s scope to cover the entire digital economy.
The Synthesis Paper from the IMF and FSB will provide a detailed plan for the G20 to consider when it is released at the end of August.
Earlier in July, the FSB released guidelines for cryptocurrencies and stablecoins, requiring exchanges to keep their customers’ digital assets separate from their own and to keep clear distinction between their functions to prevent conflicts of interest. Stablecoin issuers are also required by the rules to get a national licence in any jurisdiction where they conduct business.
