India highlights three principles for global framework on crypto assets

India has underlined three principles for a global framework on crypto assets in an input paper presented to the G20 finance ministers and central bank governors here.

The Presidency's input note stresses the need to address macroeconomic and financial stability risks, investor protection, and education while reiterating that nothing should be done to stifle technological innovation. Agovernment official said New Delhi has also highlighted the risks of money laundering and terror financing from these instruments due to their opacity.

“We note the Presidency Note as an important input for the Synthesis Paper. We also welcome the Banque for International Settlements report on The Crypto Ecosystem: Key Elements and Risks,” the chair summary and outcome document issued after the two-day meeting of G20 Finance ministers and central bank governors said. The International Monetary Fund (IMF) and Financial Stability Board (FSB) will prepare a synthesis paper on overall crypto assets regulation for consideration of leaders when they meet in September. They also endorsed the FSB’s high-level recommendations for the regulation, supervision, and oversight of cryptoassets activities and markets and of global stablecoin arrangements.


The FSB on Monday unveiled the final rules for crypto firms mandating the introduction of safeguards to prevent casualties such as exchange collapse. The recommendations, issued at the direction of G20, also revised its existing recommendations for stable coins. RBI governor Shaktikanta Das said the FSB report does not go into the critical issue of financial stability.

RBI has backed a ban on these assets in view of the risks they pose to overall macroeconomic stability. “Crypto’s inherent structural flaws make it unsuitable to play a constructive role in the monetary system,” the BIS report said. “We ask the FSB and standard-setting bodies (SSBs) to promote effective and timely implementation of these recommendations in a consistent manner globally to avoid regulatory arbitrage,” the outcome document said