Global Crypto Rules will be Formed on a New Synthesis Paper
Global crypto rules will be based on the upcoming FSB and IMF Synthesis Paper in G-20
The International Monetary Fund (IMF) and the Financial Stability Board (FSB) jointly produced a new synthesis paper on which future global crypto rules will be based, India announced Group of 20 (G-20) meetings in Bangalore. This year’s G-20 president is India.
The announcement came after three days of meetings among the world’s 20 largest economies, during which the creation of a global regulatory framework for cryptocurrency was a top priority.
The G-20 finance ministers and central bank governors’ meeting was expected to chart the course for globally coordinated crypto rules. According to Indian Finance Minister Nirmala Sitharaman during a press conference, the synthesis paper will be submitted during India’s
G-20 presidency, which culminates in September when India hosts G-20 leaders from around the world. When asked if the consensus on global crypto regulation that India prioritized for its G-20 presidency would take place during India’s term, Sitharaman responded, “First and foremost, we are going through the study process so that there can be informed discussions.”
Sitharaman went on to say that Canada’s central bank governor warned other members that crypto assets should not be given the “regulatory seal of approval” without a well-thought-out approach and implementation framework. “The World Bank stated that all developing countries’ perspectives should be included in any (crypto) policy framework,” Sitharaman added.
According to India Central Bank Governor Shaktikanta Das, there has been a significant shift in G-20 perception of crypto assets over the last year, during which several major crypto companies, including the FTX exchange, have failed. According to Das, there is now widespread acceptance of the risks associated with crypto assets.
A singular event has allowed India to shape global policy for everything involving crypto – its presidency of the Group of 20 (G-20). Its term, which began in December, puts the country in charge of defining the future of money as the developed world looks to define it. The election comes after India announced steep crypto taxes on February 1, 2022, which crypto companies operating in the country slammed. According to the Esya Centre, a New Delhi-based technology policy think tank, Indians moved more than US.
8 billion in trading volume from local to international crypto exchanges between February, when the taxes were announced, and October 2022, when the new taxes were implemented.
There is a lot that could happen in India regarding the crypto industry and how the country regulates it. What India does as the G-20 president may provide some hints.
India’s year-long G-20 presidency gives the country the authority to set the intergovernmental forum’s crypto agenda. India can now bring together various stakeholders, including the G-20 countries and the European Union, which together account for more than 85% of global GDP, as well as invited international institutions such as the United Nations, the International Monetary Fund (IMF), and the Financial Stability Board (FSB).