G20 members on Saturday reached a consensus on the New Delhi Leaders’ Declaration including key financial parameters like Building Digital Public Infrastructure, Digital Economy, Cryptoassets, and CBDC, among others.
One of the key aspects that everyone was eyeing was the crypto-assets regulations.
They endorse the Financial Stability Board’s (FSB’s) high-level recommendations for the regulation, supervision, and oversight of crypto-asset activities and markets and of global stable coin arrangements.
Finance Minister Nirmala Sitharaman said at a press conference that a global consensus is emerging on virtual digital asset (VDA) policies.
“Global push for clearer policies on crypto assets have gained momentum, global consensus emerging.” The Union minister added that the presidency will support the International Monetary Fund (IMF) and the Financial Stability Board (FSB) for a “globally coordinated crypto regulatory framework,” she said.
Also Read: DPI, Digital Economy, Cryptocurrency: Key takeaways from G20 Summit 2023 consensus
It is to be noted that IMF and the FSB have unveiled a collaborative effort to provide comprehensive policy recommendations by publishing a policy paper in response to a request from the Indian G20 presidency.
Policy paper highlighted the volatility inherent in stablecoins. The sudden volatility of stablecoins can significantly threaten financial stability, emphasising the need for comprehensive regulatory oversight, it said.
It further discusses DeFi protocols and said that despite variations in the processes used to provide DeFi services compared to traditional financial platforms, DeFi essentially fulfils the same functions as the conventional financial system.
In the declaration paper, the G20 leaders said it has asked the FSB and SSBs to promote the effective and timely implementation of these recommendations in a consistent manner globally to avoid regulatory arbitrage.
Members welcomed the IMF-FSB Synthesis Paper on crypto, including a Roadmap, that will support a coordinated and comprehensive policy and regulatory framework taking into account the full range of risks and risks specific to the emerging market and developing economies (EMDEs) and ongoing global implementation of FATF standards to address money laundering and terrorism financing risks.
Our Finance Ministers and Central Bank Governors will discuss taking forward the Roadmap at their meeting in October 2023, it highlighted.
Also Read: Consensus reached at G20, ‘New Delhi Leaders Declaration’ adopted: PM Modi
