The current Group of Twenty (G20) president India has increased its efforts in a previously unheard-of move toward a uniform global framework for cryptocurrency laws. India has released its presidency note on crypto in an attempt to have its views included in the development of global crypto standards. This endeavor carried out in collaboration with other organizations, intends to close the regulatory gaps now present for crypto-assets and produce a more effective resource allocation framework.

India’s Take On Global Crypto Regulations

The G20’s actions offer valuable input for the  International Monetary Fund (IMF)-Financial Stability Board (FSB) Synthesis Paper, expected to be published at the end of August. This significant paper aims to encapsulate a comprehensive understanding of financial system risks, including macro-financial, financial stability, and financial integrity risks. The Paper will champion a coordinated and comprehensive policy and regulatory framework for crypto-assets, setting global minimum standards for jurisdictions worldwide.

Considerable groundwork on regulatory standards for crypto-assets has already been laid by the G20, with expert reports and standards developed by International Organizations (IOs) and Standard Setting Bodies (SSBs) addressing crucial aspects of crypto-assets.

The FSB and the Financial Action Task Force (FATF) have issued comprehensive recommendations to mitigate risks associated with crypto assets, including financial stability and money laundering. The shared work plan for 2023 by the FSB and SSBs aims to create a globally coherent regulatory framework while focusing on public reporting and risk monitoring.

Additional action items include reaching out to all jurisdictions to raise awareness of the risks, beginning with those where the adoption of cryptocurrency assets has been highest, involving non-G20 members, and giving the IMF and FSB authority to oversee the work around global crypto regulations.

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The Need For Global Crypto Policy

The paper suggests a new age in the global regulation of crypto assets will be marked by the IMF, FSB, and FATF facilitating coordination of work in the crypto sector and ensuring that there are no gaps or duplications.

Ajay Seth, a senior official of the Indian Finance Ministry, first revealed the existence of such a memo before the Finance Ministers and Central Bank Governors (FMCBG) conference in India last month.

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