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
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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.
