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India stresses the importance of addressing the risks of digital assets in developing countries.
India’s Support for Global Crypto Framework: As the current G20 presidency holder, India has backed the recommendations of the Financial Stability Board (FSB) for a global crypto framework published in July. The country also stresses the need to address the risks associated with digital assets in developing nations.
On August 1, India released its presidency note to contribute to a global crypto framework roadmap. The document aligns with guidelines from the FSB, Financial Action Task Force (FATF), and International Monetary Fund (IMF).
Focus on Developing Countries:
India suggests additional measures in the roadmap, with a particular focus on developing countries. While the IMF considers the specific aspects of crypto guidelines for developing economies, India urges the FSB to do the same. The country also calls for outreach to all jurisdictions to raise awareness of risks, starting with countries that have higher crypto adoption. Furthermore, India proposes extending future regulatory approaches to the digital economy beyond the G20’s scope.
According to the note, the IMF and FSB plan to release a Synthesis Paper by the end of August, offering a broad roadmap for consideration by the G20.
FSB’s Guidelines for Crypto and Stablecoins: In July, the FSB issued guidelines for crypto and stablecoins. The guidelines emphasize the need for crypto platforms to separate clients’ digital assets from their own funds and establish clear functional divisions to avoid conflicts of interest. Regulators will ensure close cooperation and oversight across borders.
Additionally, stablecoin issuers are required to obtain a national license in each jurisdiction they operate before commencing their operations.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.