India to Establish Position on Digital Assets Following G20 Summit
India is planning to determine its stance on digital assets after evaluating the international consensus on cryptocurrency regulations during the recent G20 leaders’ summit. Ajay Seth, Secretary of the Department of Economic Affairs, provided insights into this decision. He highlighted the progress made within the G20, with organizations like the IMF, FSB, FATF, and BIS collaborating to create a policy framework for assessing cryptocurrency-related risks. The endorsement of previous initiatives aimed at regulating stablecoins and unbacked crypto assets was also emphasized. Seth acknowledged the challenges of banning virtual currencies and stressed the need for a global consensus on adopting minimum regulatory standards. The IMF and FSB released a policy paper advocating for a licensing system for crypto-asset platforms, subjecting them to anti-money laundering and counter-terrorist financing standards. The G20 leaders have officially supported this paper and further discussions are expected to define a global regulatory framework.
Hot Take: India Takes a Measured Approach to Crypto Regulation
India is making progress in formulating its stance on digital assets by assessing the international consensus on cryptocurrency regulations. The country recognizes the need to align with global standards and has endorsed initiatives aimed at regulating stablecoins and unbacked crypto assets. Rather than implementing an outright ban, India is advocating for the adoption of minimum regulatory standards proposed by the IMF and FSB. The country acknowledges the challenges of banning cryptocurrencies unilaterally and emphasizes the importance of global cooperation. The IMF and FSB have released a policy paper suggesting a licensing system for crypto-asset platforms, subjecting them to anti-money laundering and counter-terrorist financing standards. By actively participating in discussions and collaborating with international organizations, India is working towards establishing a comprehensive and effective regulatory framework for cryptocurrencies.
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