In view of concerns regarding the complexity and volatility around crypto assets, India has urged the IMF and Financial Stability Board (FSB) to jointly prepare a technical paper on crypto assets.
India, which is currently holding G20 Presidency, has said the technical paper could be used in formulating a coordinated and comprehensive policy to regulate crypto assets.
“There is no global policy framework for crypto assets,” Finance Minister Nirmala Sitharaman said.
International organisations are expected to present their joint paper during the 4th Finance Ministers and Central Bank Governors Meeting in October 2023, said a finance ministry release.
“To complement the ongoing dialogue on the need for a policy framework, the Indian Presidency has proposed a joint technical paper by the International Monetary Fund (IMF) and the FSB, which would synthesise the macroeconomic and regulatory perspectives of crypto-assets. This would help in the formulation of a coordinated and comprehensive policy approach to crypto assets,” it said.
The IMF’s discussion paper, the policy seminar and the joint IMF-FSB paper are expected to integrate the policy questions pertaining to macro-financial and regulatory perspectives of crypto assets and facilitate a global consensus on a well-coordinated and comprehensive policy approach to crypto assets, it said.
There is no comprehensive global policy framework for crypto assets despite the rapid evolution of the crypto universe, it said. “Given the concerns over greater interconnectedness between crypto assets and the traditional financial sector as well as the complexity and volatility around crypto assets, policymakers are calling for tighter regulation.”
