The Group of Twenty (G20) note on cryptocurrency was published by India, the G20’s current president, in an effort to have its recommendations taken into consideration for creating international crypto regulations.
The memo assumes importance because it represents India’s formal suggestions before the Financial Stability Board (FSB) and International Monetary Fund (IMF) jointly prepare a synthesis paper that would be used to frame the next round of global crypto rules. The FSB individually asked for more regulations for cryptocurrency asset transactions and international stablecoin agreements in July.
The synthesis document is anticipated around the end of August, less than two weeks before the G20 Leaders’ Summit, according to the letter. In a blog post on July 18, the IMF stated that it would provide the synthesis document at the Leaders’ Summit.
The remark requests that the synthesis paper contain action items such encouraging the efficient implementation of the FSB’s and the other standard-setting bodies’ recommendations. The note also requests that risks unique to emerging markets and developing economies be taken into account, as well as macro-financial repercussions.
The IMF and FSB will be given responsibility for coordinating the work around international crypto rules, and other action points include outreach to all jurisdictions to raise awareness of risks, starting with the regions that have seen higher adoption of crypto assets and involving non-G20 members.
Ajay Seth, a senior official in the Indian Finance Ministry, was the first to break the news of the existence of such a note prior to the Finance Ministers and Central Bank Governors (FMCBG) conference in India last month.Seth further stated, without going into specifics about the note, “(India) contributed its own note, it’s the presidency note in the sense that we came up with that idea (and) several other countries contributed.
“G20 Members sought Changes to the Note, Given that Any Document from India as the Current President of the G20 should Reflect the Collective Consideration of Members,”