The comments contributed to a sentiment that stalled one part of India’s plans – putting forward its own presidency note on crypto…reports Asian Lite News
Leading economic officials pushed for greater global coordination of crypto regulations during a recent roundtable discussion held during a G20 meeting.
International Monetary Fund Managing Director Kristalina Georgieva opposed the idea of an outright ban, likening crypto to water: “You try to plug it from one side, it will find some hole and come out.”
At the same meeting, key U.S. Treasury official Jay Shambaugh said drafting global crypto rules wouldn’t normalize the sector’s disasters, much like how mandating seat belts didn’t normalize car crashes. The roundtable, which was hosted by India as the current G20 president, was conducted under Chatham House rules and thus closed to the media.
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The comments contributed to a sentiment that stalled one part of India’s plans – putting forward its own presidency note on crypto.
The note was intended to reflect a roadmap for crypto regulations and show an appreciation of India’s role in shaping it, two people familiar with the matter told CoinDesk. Local reports confirmed India’s intent, but other G20 members pushed back, asking for changes. They said that given India is currently the G20 president, it represents the collective voice of the G20, and thus anything it puts out should be after consultations with members.
India published the note on August 1, almost two weeks after additional discussions around its contents. The note assumes significance as it’s an official document that voices India’s recommendations for global coordination around crypto regulation.
In its presidency note, India announced that an anticipated “synthesis paper,” which will be jointly produced by the IMF and the Financial Stability Board (FSB), is expected by the end of August.
The paper will focus on the global macro implications for crypto, and is expected to include the recommendations from India’s presidency note, as well as recommendations from other standard-setting bodies.
India’s push for an inclusion of concerns around macro-financial implications and risks specific to Emerging Markets and Developing Economies (EMDEs) is likely to be accommodated and is seen as an achievement by local officials, individuals familiar with it said.
India is hoping to celebrate its efforts in pushing for a globally acceptable framework for crypto rules during the leaders’ summit in early September, and a ready synthesis paper would exemplify that effort, the individuals familiar with the matter told CoinDesk.
It is even possible that Indian Prime Minister Narendra Modi will tout the creation of global crypto rules under India’s presidency during his address at the G20 leaders’ summit, the same people said, seeking anonymity as they were not authorized to speak on the matter.
An FSB paper recommending a framework for crypto assets included a de-facto deadline to implement its framework for jurisdictions.
“The FSB will, by end-2025, conduct a review of the status of the implementation of these two sets of recommendations (for crypto assets and stablecoins) at the jurisdictional level,” the paper said.
Effectively, this means FSB member nations will have to bring in individual rules or legislation that implement the recommendations by end-2025.
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