The Global Fintech Fest 2023 witnessed Finance Minister Nirmala Sitharaman announcing ongoing efforts to establish a worldwide framework for the regulation of crypto assets. During her address in Mumbai on Tuesday, she emphasised the necessity of international cooperation for effective cryptocurrency regulation. Sitharaman stated, "India's (G20) presidency has put on the table key issues related to regulating or understanding that there should be a framework for handling issues related to crypto assets. Active discussions are happening," as reported by Reuters.
In parallel, the Financial Stability Board (FSB) and the International Monetary Fund (IMF) have shared their synthesis paper on crypto asset regulation with member nations. The paper delineates policy strategies and offers an extensive roadmap, slated for public release on September 7.
The finance deputies from G20 nations will convene on September 6 and 7, ahead of the leaders' summit, to deliberate on issues pertaining to debt distress and digital public infrastructure. The G20 Summit is scheduled to occur in New Delhi on September 9 and 10.
India has also secured the co-chair position alongside Italy for the Global Partnership for Financial Inclusion (GPFI) for the next three years. GPFI serves as an inclusive platform for G20 and non-G20 countries, as well as pertinent stakeholders, to advance financial inclusion initiatives.
In their initial report addressing crypto asset regulation, the FSB issued a series of recommendations in July, encompassing data collection, cross-border collaboration, governance structures, and regulatory authority. However, the FSB's report did not adequately address India's specific concerns regarding crypto assets.
The report acknowledged its limitations, highlighting that it does not comprehensively cover all specific risk categories related to crypto asset activities. These unaddressed areas include anti-money laundering, counter-terrorism financing, data privacy, cybersecurity, consumer and investor protection, market integrity, competition policy, taxation, monetary policy, and monetary sovereignty.
As global discussions intensify and India takes a leadership role in fostering cooperation, the path toward a unified framework for crypto asset regulation remains a critical topic on the international stage.
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