India, the current President of the G20 forum, has put forward some recommendations for regulating crypto assets. The country aims to prioritize specific areas of work to achieve a comprehensive and coordinated global policy for the crypto sector.
In a note released on August 1st, India acknowledged the progress made by intergovernmental organizations in preparing regulatory standards for the crypto industry but emphasized the need for more coordination to ensure consistent implementation of regulations across different jurisdictions.
This note serves as India’s input for a Synthesis Paper to be published by the IMF and the FSB at the end of August. The paper will cover various crypto-related risks and include a “Roadmap on Establishing a Global Framework for Crypto Assets” for consideration by the G20.
The ultimate goal of this global roadmap is to establish an agreed minimum policy standard for crypto assets that safeguards macroeconomic, financial stability, and financial integrity. Countries may choose to adopt even more stringent regulations beyond this minimum standard.
India suggests several “action points” to be included in the roadmap, such as capacity building for implementation, oversight, and enforcement of standards, starting with jurisdictions that have higher crypto adoption and where major crypto exchanges and stablecoin issuers operate.
Additionally, there is a call to extend approved policy and regulatory frameworks on crypto assets to non-G20 member countries, while continuing to monitor financial stability risks and macrofinancial vulnerabilities posed by crypto assets.
To combat money laundering and terrorism financing, India advocates for the effective implementation of AML and CFT standards across jurisdictions based on a risk-based approach. The Financial Action Task Force (FATF) should report directly to the G20 on the implementation of these measures.
The Indian Presidency also proposes creating a framework to offer technical assistance and guidance to regulators and institutions, within the scope of each standard setting body’s mandate, and to monitor the implementation of recommended standards in each jurisdiction.