Prime Minister Narendra Modi announced on Saturday that the G20 had achieved unanimous agreement on a leaders' declaration. He attributed this achievement to the collective efforts of all the teams involved and conveyed the adoption of the G20 Leaders Summit Declaration during his address to the bloc leaders in New Delhi. Among other notable developments, it appears that the much-discussed global coordination on crypto regulation has taken a solid step forward, as Finance Minister Nirmala Sitharaman said that a “global consensus” is emerging on virtual digital asset (VDA) policies.
Sitharaman said, “Global push for clearer policies on crypto assets have gained momentum, global consensus emerging.” The Union minister added that the presidency will support the International Monetary Fund (IMF) and the Financial Stability Board (FSB) for a “globally coordinated crypto regulatory framework.”
Earlier this week, the two global bodies unveiled a joint synthesis paper, which laid the groundwork for a comprehensive framework. Sitharaman added that the next G20 finance ministers and central bank governors' meeting in October will discuss the IMF-FSB paper on crypto assets.
Policies and regulations around crypto assets found prominent mention in the G20 New Delhi Leaders’ Declaration. Given below is the full text:
“We continue to closely monitor the risks of the fast-paced developments in the cryptoasset 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. We ask the FSB and SSBs 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. We welcome 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 also mentioned Central Bank Digital Currencies (CBDCs), saying that discussions were welcomed on “the potential macro-financial implications arising from the introduction and adoption of CBDCs, notably on cross-border payments as well as on the international monetary and financial system.”
“We welcome the BIS Innovation Hub (BISIH) Report on Lessons Learnt on CBDCs and look forward to the IMF Report on Potential macro-financial implications of widespread adoption of CBDCs to advance the discussion on this issue,” the statement added.
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