IMF and FSB to Develop ‚Synthesis Paper‘ to Help Formulate Crypto Policy
• India has asked the International Monetary Fund (IMF) and Financial Stability Board (FSB) to develop a technical paper on crypto assets.
• The paper would be presented at the G20 meeting of finance ministers and central bank governors, aiming to help in formulating a coordinated and comprehensive policy approach to crypto assets.
• The FSB is expected to provide high-level recommendations on the regulation, supervision and oversight of global stablecoins, as well as on the regulation, supervision and oversight of crypto-asset markets and activities by July 2023.
India Asks IMF and FSB for Joint Paper
India has asked the International Monetary Fund (IMF) and Financial Stability Board (FSB) to develop „a synthesis paper“ on crypto assets as part of the G20 meeting of finance ministers and central bank governors under India’s presidency. „This would help in the formulation of a coordinated and comprehensive policy approach to crypto assets,“ said India’s finance ministry.
Synthesis Paper Aimed at Formulating Crypto Policy
India released its „G20 Chair’s Summary and Outcome Document“ following the two-day G20 meeting that took place in Bengaluru on Feb. 24-25. Crypto regulation was among the topics discussed during a panel discussion on cryptocurrency regulation as part of this event. During this meeting, India requested that IMF and FSB collaborate on a technical paper with an aim to help formulate a coordinated policy approach towards cryptocurrencies.
High Level Recommendations from FSB by July 2023
The document states that IMF and FSB will submit their synthesis paper in September 2023 while FSB is expected to provide its high-level recommendations by July 2023 concerning regulatory oversight over global stablecoins as well as crypto asset markets & activities. Additionally, Bank of International Settlements (BIS) will submit its report concerning analytical & conceptual issues related with cryptocurrencies along with risk mitigation strategies by March 2024.
Statement from Indian Ministry of Finance
Indian ministry of finance released a statement post G20 meeting emphasizing their proposal for joint technical paper by IMF & FSB which will consider macroeconomic perspectives while formulating comprehensive policies towards cryptocurrencies. They also stated their aim to expand scope of discussion within G20 not only covering financial integrity but also adoption & implications in macroeconomic context throughout economy .
India has taken several steps towards developing policies for regulating cryptocurrencies within its jurisdiction . With detailed reports from IMF , BIS & High level recommendation from FSB , we can expect further clarity regarding long term plans around Cryptocurrency regulations especially within Indian economy .