India Backs Global Crypto Framework and Highlights Risks for Developing Economies
As the current president of the Group of Twenty (G20), India has shown support for the Financial Stability Board’s (FSB) recommendations for a comprehensive global crypto framework, which were published in July. The country has also emphasized the importance of addressing the risks associated with digital assets, especially for developing economies.
On August 1st, India released its presidency note as an input for a roadmap towards a worldwide crypto framework. The document aligns with the guidelines put forth by the Financial Stability Board (FSB), the Financial Action Task Force (FATF), and the International Monetary Fund (IMF).
India’s note, while endorsing the existing guidelines, proposes certain additional measures, particularly focusing on the needs and concerns of developing countries. While the IMF acknowledges the unique circumstances of developing economies in its potential crypto guidelines, India urges the FSB to incorporate these considerations as well. Moreover, India calls for proactive outreach to all jurisdictions to raise awareness of the risks associated with digital assets, starting with countries with higher crypto adoption rates. Additionally, India advocates for extending the future regulatory approach to the digital economy beyond the G20’s scope.
India’s proactive stance in supporting a global crypto framework and highlighting the risks faced by developing economies underscores the nation’s commitment to fostering a balanced and responsible approach to digital asset regulation. As the G20 presidency, India aims to drive collaborative efforts towards ensuring the stability and security of the global financial landscape in the face of rapid advancements in the digital asset space.
