India Backs G20's Global Framework For Cryptocurrencies, Urges Focus On Developing Countries

As the current chair of the G20, India has expressed its support for the Financial Stability Board's (FSB) proposed global framework for cryptocurrencies, which was released in July.

The nation has also highlighted the importance of addressing the risks associated with digital assets, particularly for emerging economies.

India's stance was revealed in a Presidency Note, which was published on the G20's official website on August 1.

The note is intended to provide input for a roadmap toward a global framework for cryptocurrencies.

It aligns with the guidelines put forth by the FSB, the Financial Action Task Force (FATF), and the International Monetary Fund (IMF).

However, the Presidency Note also proposes some additional considerations.

One of these is a stronger focus on developing countries. While the IMF's potential cryptocurrency guidelines do take into account the unique circumstances of these economies, India is urging the FSB to also incorporate these considerations.

The note advocates for efforts to raise awareness of the risks associated with cryptocurrencies in all jurisdictions, starting with those where cryptocurrency adoption is highest.

Furthermore, it suggests that the regulatory approach to the digital economy should extend beyond just the G20 countries.

The Presidency Note also reveals that a Synthesis Paper, prepared by the IMF and FSB, is expected to be released at the end of August.

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This paper will provide a comprehensive roadmap that the G20 can consider adopting.

In July, the FSB published its own guidelines for cryptocurrencies and stablecoins.

These guidelines stipulate that cryptocurrency platforms must keep their own funds separate from their clients' digital assets and must clearly delineate functions to avoid conflicts of interest.

Regulators are also urged to ensure robust cross-border cooperation and oversight.

Additionally, the guidelines require stablecoin issuers to secure a national license in any jurisdiction where they wish to operate.

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