India asks IMF and FSB to prepare technical document on regulation of crypto-assets

The international organizations are expected to present their joint document during the fourth meeting of finance ministers and central bank governors in October 2023, says a statement from the Ministry of Finance.

The international organizations are expected to present their joint document during the fourth meeting of finance ministers and central bank governors in October 2023, says a statement from the Ministry of Finance.

“To complement the ongoing dialogue on the need for a policy framework, the Indian Presidency has proposed a joint technical document from the International Monetary Fund (IMF) and the FSB, which will synthesize the macroeconomic and regulatory perspectives of cryptoassets. This will aid in the design of a coordinated and comprehensive policy approach to crypto-assets,” it said.

“To complement the ongoing dialogue on the need for a policy framework, the Indian Presidency has proposed a joint technical document from the International Monetary Fund (IMF) and the FSB, which will synthesize the macroeconomic and regulatory perspectives of cryptoassets. This will aid in the design of a coordinated and comprehensive policy approach to crypto-assets,” it said.

Taken as a whole, the IMF discussion paper, the policy seminar and the joint IMF-FSB paper are expected to integrate policy issues related to macro-financial and regulatory perspectives for cryptoassets and facilitate a global consensus on a well-coordinated and comprehensive policy. approach to crypto assets, it says.

Taken as a whole, the IMF discussion paper, the policy seminar and the joint IMF-FSB paper are expected to integrate policy issues related to macro-financial and regulatory perspectives for cryptoassets and facilitate a global consensus on a well-coordinated and comprehensive policy. approach to crypto assets, it says.

Despite the rapid development of the crypto universe, there is no comprehensive global policy framework for crypto assets. Given the concerns over greater interconnection between cryptoassets and the traditional financial sector as well as the complexity and volatility surrounding cryptoassets, policymakers are calling for stricter regulation.

Despite the rapid development of the crypto universe, there is no comprehensive global policy framework for crypto assets. Given the concerns over greater interconnection between cryptoassets and the traditional financial sector as well as the complexity and volatility surrounding cryptoassets, policymakers are calling for stricter regulation.

Global standard-setting bodies such as the Financial Action Task Force (FATF), the Financial Stability Board (FSB), the Committee on Payments and Market Infrastructures (CPMI), the International Organization of Securities Commissions (IOSCO) and the Basel Committee on Banking Supervision (BCBS) have coordinated it regulatory agenda, while working within their respective institutional mandates, it says.

Global standard-setting bodies such as the Financial Action Task Force (FATF), the Financial Stability Board (FSB), the Committee on Payments and Market Infrastructures (CPMI), the International Organization of Securities Commissions (IOSCO) and the Basel Committee on Banking Supervision (BCBS) have coordinated it regulatory agenda, while working within their respective institutional mandates, it says.

India hopes to expand the G20 discussion on crypto assets beyond financial integrity concerns and capture the macroeconomic implications and widespread crypto adoption in the economy, it said, adding that this will require a data-driven and informed approach to the global challenges and opportunities of crypto. assets, so that G20 members can shape a coordinated and comprehensive policy response.

India hopes to expand the G20 discussion on crypto assets beyond financial integrity concerns and capture the macroeconomic implications and widespread crypto adoption in the economy, it said, adding that this will require a data-driven and informed approach to the global challenges and opportunities of crypto. assets, so that G20 members can shape a coordinated and comprehensive policy response.

In order to inform policymakers about the broader macroeconomic and financial stability implications of cryptoassets, it said, the Indian Presidency asked the IMF to prepare a discussion paper on the topic for the second G20 Finance and Central Bank meeting held in Bengaluru on February 23, 2023.

In order to inform policymakers about the broader macroeconomic and financial stability implications of cryptoassets, it said, the Indian Presidency asked the IMF to prepare a discussion paper on the topic for the second G20 Finance and Central Bank meeting held in Bengaluru on February 23, 2023.

“During the aforementioned meeting, a seminar titled ‘Policy Perspectives: Debating the Road to Policy Consensus on Crypto Assets’ was held as part of the Presidency’s efforts to expand the dialogue around crypto assets,” it said.

“During the aforementioned meeting, a seminar titled ‘Policy Perspectives: Debating the Road to Policy Consensus on Crypto Assets’ was held as part of the Presidency’s efforts to expand the dialogue around crypto assets,” it said.

IMF speaker Tommaso Mancini-Griffoli presented the discussion paper at the event, highlighting the consequences of crypto adoption on the internal and external stability of a country’s economy as well as on the structure of its financial system.

IMF speaker Tommaso Mancini-Griffoli presented the discussion paper at the event, highlighting the consequences of crypto adoption on the internal and external stability of a country’s economy as well as on the structure of its financial system.

Mancini-Griffoli stressed that the claimed benefits of crypto-assets include cheaper and faster cross-border payments, more integrated financial markets and increased financial inclusion, but these have yet to materialize.

Mancini-Griffoli stressed that the claimed benefits of crypto-assets include cheaper and faster cross-border payments, more integrated financial markets and increased financial inclusion, but these have yet to materialize.

He further added that issues of interoperability, security and efficiency cannot be guaranteed by the private sector and critical digital infrastructure/ledger platforms should be seen as a public good.

He further added that issues of interoperability, security and efficiency cannot be guaranteed by the private sector and critical digital infrastructure/ledger platforms should be seen as a public good.

He also flagged the global information gaps related to the crypto-asset universe and the need to build a deeper understanding of the connections, opportunities and risks related to crypto-assets under G20 auspices.

He also flagged the global information gaps related to the crypto-asset universe and the need to build a deeper understanding of the connections, opportunities and risks related to crypto-assets under G20 auspices.

The discussions covered a wide range of topics, including the need for a common taxonomy and a systematic classification of the cryptoasset universe, benefits and risks of cryptoassets, macroeconomic policy issues that needed further consideration, and financial stability issues and regulatory responses.

The discussions covered a wide range of topics, including the need for a common taxonomy and a systematic classification of the cryptoasset universe, benefits and risks of cryptoassets, macroeconomic policy issues that needed further consideration, and financial stability issues and regulatory responses.

The statement said the event has helped initiate a broader dialogue on cryptoassets, but also raises several relevant policy questions that policymakers and regulators need to carefully consider.

The statement said the event has helped initiate a broader dialogue on cryptoassets, but also raises several relevant policy questions that policymakers and regulators need to carefully consider.

In addition to evaluating the consequences of cryptoassets for the wider economy, there is also an existential question of whether cryptoassets are actually the optimal solution to existing challenges in global financial systems.

In addition to evaluating the consequences of cryptoassets for the wider economy, there is also an existential question of whether cryptoassets are actually the optimal solution to existing challenges in global financial systems.