India, which currently holds the G20 presidency, supported the Financial Stability Board’s recommendations for a global crypto framework published in July. The country also emphasized the necessity of dealing with digital assets’ risks for developing economies.
On August 1, India’s Presidency Note for input in a roadmap on a global framework for crypto was published on the page of G20, an intergovernmental forum of the 20 largest economies in the world. The document concurs with the guidelines, written by the FSB, the Financial Action Task Force (FATF) and International Monetary Fund (IMF).
However, the Presidency Note suggests some additions. Among them is an emphasis on developing countries — while the IMF pays attention to developing economies’ specifics in its potential guidelines for crypto, India urges FSB to implement them as well. It also calls for outreach to all jurisdictions to “generate awareness of risks,” starting from countries with higher crypto adoption, and to extend the future regulatory approach to the digital economy beyond the G20 scope.
As revealed in the Note, the so-called Synthesis Paper by IMF and FSB will come out at the end of August and provide a broad roadmap to be considered for adoption by the G20.
In July, FSB published its guidelines for crypto and stablecoins in particular. The FSB states that crypto platforms must segregate clients’ digital assets from their own funds and clearly separate functions to avoid conflict of interest, with regulators ensuring tight cross-border cooperation and oversight. The guidelines also include the obligation for stablecoin issuers to obtain a national license in any single jurisdiction before they can operate there.