India offers to add additional emphasis on developing countries and crypto-related risk awareness in the global crypto framework.
With the current presidency of the Group of Twenty (G20), India has come forward to express its endorsement of the Financial Stability Board’s (FSB) global crypto framework released in July.
Highlighting the pivotal need to address digital asset risks, particularly in developing economies, the country has offered further input for the global crypto roadmap.
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According to India's presidency note published on August 1st, the country fully agrees with the directions set by the FSB, along with those laid out by the International Monetary Fund (IMF) and the Financial Action Task Force (FATF).
Despite agreeing with the majority of rules suggested by various institutions, India put forward a few additional considerations. One significant aspect was the call for increased focus on developing nations. While the IMF's crypto guidelines already recognize the unique circumstances of these economies, India has urged the FSB to incorporate these nuances into the guidelines.
India's note also advocates for awareness campaigns on digital asset-related risks. This outreach should start in regions with substantial crypto adoption and progressively broaden the regulatory horizon to encapsulate the entirety of the digital economy beyond the G20's scope.
The note also indicates that a comprehensive "Synthesis Paper," created by the IMF and FSB, is set to be released at the end of August. This document will provide an extensive roadmap for digital asset regulation and will be evaluated by the G20.
The Financial Stability Board’s guidelines focus specifically on cryptocurrency and stablecoins. On top of that, the guidelines advocate for a clear distinction between the digital assets of clients and those of the platforms themselves. It also calls for strict separation of functions to prevent conflicts of interest, demanding rigorous cross-border oversight and cooperation from regulators.
India's proactive stance in supporting the G20's global crypto framework, with added emphasis on developing countries, highlights its commitment to shaping inclusive and responsible cryptocurrency regulations. The forthcoming "Synthesis Paper" and India's additional suggestions could play a key role in forming a comprehensive international approach to digital assets.
