India asks IMF, FSB for joint paper to help formulate ‘comprehensive’ crypto policy – regulation Bitcoin News

India has asked the International Monetary Fund (IMF) and the Financial Stability Board (FSB) to develop “a synthesis paper” on crypto-assets as part of the G20 meeting of finance ministers and central bank governors under India’s presidency. “This will help in the formulation of a coordinated and comprehensive policy approach to crypto-assets,” India’s finance ministry said.

India asks IMF and FSB for technical paper on crypto

The Indian government on Saturday released its “G20 Leaders’ Summary and Outcome Document” after the first two-day G20 meeting of finance ministers and central bank governors that took place in Bengaluru on 24-25. February. Crypto regulation was among the topics discussed.

During a panel discussion on cryptocurrency regulation as part of the G20 meeting, India called for the International Monetary Fund (IMF) and the Financial Stability Board (FSB) to collaborate on a technical paper on cryptoassets. According to the summary document:

The IMF and FSB will jointly submit a synthesis paper integrating the macroeconomic and regulatory perspectives of cryptoassets in September 2023.

The document adds that the FSB will “complete its high-level recommendations on the regulation, oversight and supervision of global stablecoins; and high-level recommendations on the regulation, oversight and supervision of crypto-asset markets and activities by July 2023.” In addition, the Bank of International Settlements (BIS) will “send a report on analytical and conceptual issues and possible risk mitigation strategies related to crypto-assets.”

India’s finance ministry also released a statement on Saturday after the G20 meeting of finance ministers and central bank governors. “To complement the ongoing dialogue on the need for a policy framework, the Indian Presidency has proposed a joint technical document from the International Monetary Fund (IMF) and the FSB, which will synthesize the macroeconomic and regulatory perspectives of crypto-assets,” the ministry stated, elaborating:

This will help in the formulation of a coordinated and comprehensive policy approach to crypto-assets.

India aims to broaden the scope of the G20 discussion on crypto-assets to include not only financial integrity concerns, but also the macroeconomic implications and widespread use of cryptocurrencies across the economy, the Indian finance ministry statement further notes.

India’s Finance Minister Nirmala Sitharaman has said for many months that crypto will be a priority in G20 discussions during India’s presidency. She said last October that India hopes to arrive at a technology-driven regulatory framework or standard operating procedure (SOP) for crypto-assets. Sitharaman has also repeatedly pushed for international cooperation on crypto.

This week, the IMF’s Executive Board issued guidance to help countries develop effective crypto policies. In addition to recommending that “crypto-assets should not be given the status of official currency or legal tender,” IMF board members “agreed that strict bans are not the first best option, but that targeted restrictions may apply.”

What do you think about India asking the IMF and FSB to jointly develop a technical paper on crypto? Let us know in the comments section below.

Kevin Helms

A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of economics and cryptography.