'Push for clear policies on crypto assets gained momentum under the India’s G20 Presidency'

NEW DELHI: The global push for clear policies on crypto assets has gained momentum under the Indian G20 Presidency and global consensus is emerging on the same, Finance Minister Sitharaman said on Saturday and noted that G20 members will take a call on how they want to move forward on the issue.

Answering a query from ANI during a press conference about regulation concerning crypto, the Finance Minister said the Financial Stability Board's (FSB) report has concentrated more on regulation and IMF has looked at the macroeconomic implications and the G20 members will go through the synthesis paper in detail.

“The FSB (report) has concentrated more on regulation and IMF has looked at the macroeconomic implications. So the synthesis paper is something which G20 membership will go through in detail. There is one more meeting under our presidency for the finance track in Marrakesh. There the synthesis report will be discussed. So it is for (G20) membership to take a call as to how it wants to move on it, framework or template, whatever be it, don't think we have given a name as yet and to now discuss whether it is to be a regulation only and not a ban, I am not getting into that debate,” she said.

Sitharaman was addressing a joint press conference along with External Affairs Minister S Jaishankar and India’s G20 Sherpa Amitabh Kant after New Delhi G20 Declaration was adopted at the Summit.

She said the synthesis paper delves into how the policy and regulatory frameworks, developed by the IMF and FSB alongside the other standard-setting bodies will fit together and interact with each other.

“The global push for clear of policies on crypto assets has gained momentum under the India’s Presidency and a global consensus is emerging on the same. The Presidency will support IMF and FSB is also setting the contours of the regulatory framework for a globally coordinated approach to crypto assets. So the Presidency with the support of IMF and FSB is setting these contours,” she said.

The New Delhi G20 Declaration said that G20 countries will continue to closely monitor the risks of the fast-paced developments in the crypto asset ecosystem.

“We endorse the Financial Stability Board’s (FSB’s) high-level recommendations for the regulation, supervision and oversight of crypto-assets activities and markets and of global stablecoin arrangements,” the Declaration said.

“We ask the FSB and SSBs (standard-setting bodies) to promote the effective and timely implementation of these recommendations in a consistent manner globally to avoid regulatory arbitrage. We welcome the shared FSB and SSBs workplan for crypto assets,” it added.

The G20 countries welcomed the IMF-FSB Synthesis Paper, including a Roadmap, that will support a coordinated and comprehensive policy and regulatory framework taking into account the full range of risks and risks specific to the emerging market and developing economies (EMDEs) and ongoing global implementation of FATF standards to address money laundering and terrorism financing risks.

“Our Finance Ministers and Central Bank Governors will discuss taking forward the Roadmap at their meeting in October 2023. We also welcome the BIS Report on The Crypto Ecosystem: Key Elements and Risks,” the Declaration said.

India has been laying stress for global cooperation and collaboration to build an inclusive, resilient and sustainable financial eco-system. It has suggested a framework for handling issues relating to crypto-assets.