India, as the current holder of the G20 Presidency, has requested the International Monetary Fund (IMF) and Financial Stability Board (FSB) to develop a joint technical paper on regulating crypto assets. The paper is expected to provide a coordinated and comprehensive policy approach to regulating crypto assets.
The request was made during the G20 meeting of finance ministers and central bank governors under India’s presidency. The synthesis paper is expected to be presented during the G20 meeting of finance ministers and central bank governors.
India Asks IMF and FSB for Joint Paper to Help Formulate Comprehensive Crypto Regulation Policy
India’s finance ministry believes that the technical paper will be a valuable resource in the formulation of a comprehensive crypto regulation policy. The joint paper is expected to cover various aspects of regulating crypto assets, including their impact on financial stability, consumer protection, and money laundering.
The move by India is part of the country’s efforts to regulate the rapidly growing crypto industry, which has been largely unregulated in the country. The Reserve Bank of India had banned banks from dealing with crypto exchanges in 2018, citing concerns over money laundering and the potential risks to financial stability. However, the ban was lifted by the Supreme Court in 2020.
Since then, the Indian government has been working on a regulatory framework for the crypto industry. In 2019, an inter-ministerial committee was formed to study crypto assets and provide recommendations for their regulation. The committee recommended a ban on all private cryptocurrencies, which was later included in a draft bill.
However, the draft bill has not yet been introduced in parliament, and the government has not yet made a final decision on the regulation of crypto assets. The joint technical paper by the IMF and FSB is expected to provide valuable insights to the government in formulating a comprehensive policy on regulating crypto assets.
The regulation of crypto assets has become a priority for many governments around the world. The rapid growth of the crypto industry, combined with the potential risks it poses to financial stability and consumer protection, has led many countries to consider regulation.
India’s request for a joint technical paper on crypto regulation is a step in the right direction. It will provide the country with valuable insights into the various aspects of regulating crypto assets and help the government formulate a comprehensive policy that balances the potential benefits of the technology with the risks it poses.
