Forbes India 15th Anniversary Special

Indian G20 Presidency Proposes Global Crypto Framework to Address Risks

India's G20 leadership suggests a global crypto framework to manage risks and enhance regulatory measures in the digital asset landscape

Shashank Bhardwaj
Published: Aug 10, 2023 10:53:14 AM IST
Updated: Aug 10, 2023 11:06:03 AM IST

Indian G20 Presidency Proposes Global Crypto Framework to Address RisksImage: Shutterstock

Amid India's leadership, the G20 consortium is actively exploring the establishment of an all-encompassing worldwide regulatory structure for cryptos. The pivotal development emerged as India submitted its proposal for this regulatory framework, aiming to weave its recommendations into the broader landscape of global crypto regulations.

The primary thrust of India's initiative is to foster a coordinated international approach to managing digital assets, thereby ensuring adherence to uniform regulatory standards and mitigating associated risks.

The significance of this effort is underscored by its role in shaping the forthcoming synthesis paper. Collaboratively issued by the International Monetary Fund (IMF) and the Financial Stability Board (FSB), this synthesis paper is anticipated for release by the end of this month. It is further expected to be presented at the imminent G20 Leaders Summit scheduled for September.

The FSB, known for its commitment to safeguarding investors against crypto-related risks, has previously sounded the alarm on the potential threats digital assets pose to the broader global financial stability. 

Specifically, FSB's report highlighted the vulnerabilities arising from the growing scale and interconnectedness of cryptos with traditional financial systems, partly attributed to the lack of comprehensive governmental regulations.

The G20, in tandem with the FSB, is keen on incorporating pertinent recommendations from the board. The recently unveiled note from the India G20 Presidency calls for the synthesis paper to embrace actionable points that facilitate the effective implementation of the FSB's suggestions and other directives from established standard-setting bodies.

Additionally, a notable emphasis will be placed on heightened outreach across diverse jurisdictions, focusing on regions with a higher rate of crypto adoption. Overseeing this outreach initiative will be the joint responsibility of the IMF and FSB.

India's push for a comprehensive global crypto framework underscores its commitment to inclusivity, advocating for the representation of developing economies in shaping the evolving landscape of digital assets.

Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash