Leading economic figures recently emphasized the need for globally coordinated cryptocurrency regulations during a G20 roundtable.
G20 Officials Share Insights on Crypto Regulation
IMF Managing Director Kristalina Georgieva suggested halting cryptocurrencies was like attempting to stop water. On the other hand, U.S. Treasury representative Jay Shambaugh argued that universal crypto laws would not “normalize” the sector’s challenges.
India, the presiding G20 president, organized this private roundtable. An attendee emphasized the public value of such discussions.
India’s Role and Stance on Global Crypto Regulations
The discourse influenced part of India’s initiatives, primarily its presidential note on cryptocurrency. Intended as a regulatory roadmap, this document recognizes India’s regulatory influence. While local reports confirmed India’s intentions, several G20 members requested revisions, emphasizing collective consultation. India released this note on August 1, following further discourse.
The presidency note heralds an upcoming “synthesis paper,” collaboratively developed by the IMF and Financial Stability Board (FSB). Aiming to analyze crypto’s global macroeconomic effects, this paper will incorporate input from the presidency note and other regulatory bodies.
India’s emphasis on Emerging Markets and Developing Economies (EMDEs) concerns will likely be included. Sources suggest this note could highlight India’s push for universally accepted cryptocurrency standards during a September leaders’ summit. Speculations even hint at Prime Minister Narendra Modi discussing these global crypto standards during his G20 summit speech.
FSB Recommendations and India’s Crypto Future
The FSB proposes a de-facto deadline for jurisdictions in its recommendation paper on crypto assets. By 2025’s end, member countries must adopt legislation aligning with these recommendations. While this doesn’t necessarily translate to India introducing its initial crypto legislation, India has already implemented crypto tax structures, anti-money laundering measures, and other Web3-related strategies.
Welcoming the FSB’s proposals raises questions about cryptocurrency’s legitimacy and potential bans in India. Ajay Seth, a senior Indian Finance Ministry official, implied during a G20 media briefing that countries remain free to decide on cryptocurrency’s legality within their borders.
Simultaneously, Reserve Bank of India Governor Shaktikanta Das mentioned the FSB’s acknowledgment of individual jurisdictions’ rights to crypto prohibition. The RBI’s role is advisory, and ultimate legislative authority rests with Prime Minister Modi’s administration and the Finance Ministry. As one insider noted, “India could maintain its current stance or introduce new laws, meeting the FSB’s 2025 deadline either way.”
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