India has endorsed the Financial Stability Board’s (FSB) July recommendations for a global crypto framework emphasizing the need for developing economies to address the dangers associated with digital assets.
India released its presidency note for input into a roadmap for a global crypto framework on August 1. The document endorses the FSB, the Financial Action Task Force (FATF), and the International Monetary Fund (IMF) guidelines.
However, the note suggests some additions, such as a focus on developing nations. While the IMF considers the specifics of developing economies in its potential crypto guidelines, India urges the FSB to do the same.
It also calls for outreach to all jurisdictions to “raise awareness of risks,” beginning with countries with the highest crypto adoption rates and expanding the future regulatory approach to the digital economy beyond the Group of Twenty (G20).
According to the note, the so-called Synthesis Paper by the IMF and FSB is scheduled for publication at the end of August and will provide the G20 with a broad roadmap for consideration.
The FSB published its crypto and stablecoin guidelines in July. The FSB stipulates that crypto platforms must separate clients’ digital assets from their funds and explicitly separate functions to avoid conflicts of interest, with regulators ensuring tight cross-border cooperation and supervision.
The guidelines also stipulate that stablecoin issuers must acquire a national license in each jurisdiction before conducting business there.
