Leading economic figures recently stressed the need for globally coordinated cryptocurrency regulation during a G20 roundtable.
G20 Officials Share Insights on Crypto Regulation
IMF Managing Director Kristalina Georgieva said that stopping cryptocurrencies is like trying to shut off the water supply. On the other hand, U.S. Treasury Representative Jay Shambaugh believes that a universal crypto law would not “normalize” the challenges facing the industry.
One participant at the private roundtable, organized by India, the G20 presidency, stressed the public value of such discussions.
India’s role and stance in global cryptocurrency regulation
These comments influenced some of India’s initiatives, primarily its presidential note on cryptocurrencies. This document was intended to serve as a regulatory roadmap, recognizing India’s regulatory influence. While local reports confirmed India’s intentions, some G20 members requested revisions, emphasizing collective consultation. After further discussion, India released the note on August 1.
The Presidential Statement foreshadows an upcoming “comprehensive paper” to be prepared by the IMF and the Financial Stability Board (FSB). The paper will incorporate the Presidential Statement and the opinions of other regulators in order to analyze the impact of cryptocurrencies on the global macroeconomy.
India’s focus on emerging markets and developing economies (EMDEs) is likely to be included. Sources said the note is likely to highlight India’s push for universally accepted cryptocurrency standards during the leaders’ summit in September. Speculation has even suggested that Prime Minister Narendra Modi discussed these global crypto standards during his G20 summit speech.
FSB Recommendations and India’s Crypto Future
The FSB set a de facto deadline for jurisdictions in its recommendation paper on crypto assets. By the end of 2025, member countries must adopt legislation that complies with these recommendations. While this does not necessarily mean that India will introduce its initial crypto legislation, India has already implemented a crypto tax structure, anti-money laundering measures, and other Web3-related strategies.
The welcome to the FSB proposal raises questions about the legality of cryptocurrencies in India and a potential ban. Ajay Seth, a senior Indian finance ministry official, hinted at a G20 media briefing that countries are still free to decide the legality of cryptocurrencies within their borders.
Meanwhile, Reserve Bank of India Governor Shaktikanta Das mentioned that the FSB recognizes that individual jurisdictions have the power to ban cryptocurrencies. The RBI’s role is advisory, and the final legislative authority belongs to Prime Minister Narendra Modi’s government and the Ministry of Finance. As one insider noted, “India can maintain its current stance or introduce new laws, either way meeting the FSB’s 2025 deadline.”
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