At a recent G20 meeting, leading economic officials discussed the need for global coordination of crypto regulations. International Monetary Fund Managing Director Kristalina Georgieva likened crypto to water, saying You try to plug it from one side, it will find some hole and come out. U.S. Treasury official Jay Shambaugh added that drafting global crypto rules wouldn’t normalize the sector’s disasters, much like how mandating seat belts didn’t normalize car crashes. India, the current G20 president, hosted the roundtable discussion, which was conducted under Chatham House rules and thus closed to the media.
India published a presidency note on August 1, which was intended to reflect a roadmap for crypto regulations and show an appreciation of India’s role in shaping it. The note assumes significance as it’s an official document that voices India’s recommendations for global coordination around crypto regulation. An anticipated synthesis paper, which will be jointly produced by the IMF and the Financial Stability Board (FSB), is expected by the end of August and will focus on the global macro implications for crypto. India is hoping to celebrate its efforts in pushing for a globally acceptable framework for crypto rules during the leaders’ summit in early September.
The FSB paper recommending a framework for crypto assets included a de-facto deadline to implement its framework for jurisdictions by end-2025. India has already brought in anti-money laundering rules, a tax structure for crypto, and other plans to include Web3 are afoot in relevant ministries. Ajay Seth, one of the senior officials from the Indian Finance Ministry speaking at the G20 media briefing, hinted that the broad approach of the G20 does not rule out any member country banning crypto within its own borders. Reserve Bank of India Governor Shaktikanta Das said “the FSB report recognizes that individual jurisdictions have the choice to prohibit crypto if they so desire.”