‘India to decide its position on crypto in coming months’
New Delhi: India will evaluate the recommendations made in a paper authored by the International Monetary Fund (IMF) and the G20’s risk watchdog, the Financial Stability Board (FSB), outlining a roadmap for regulating crypto assets and integrating digital assets into digital financial systems before deciding its stance, Ajay Seth, secretary of the department of economic affairs, said. On the sidelines of the G20 summit on Sunday, Seth said the leaders have endorsed the required regulations, oversight and supervision for unbacked crypto assets.
“Keeping that framework in mind, we have to analyze our own position with reference to what the leaders have agreed," Seth said. “Given this, we will decide our position in the coming months." Seth emphasised that emerging economies face higher risks from crypto assets, especially unbacked ones.
“Given the risk, it (the synthesis paper) has a clear recognition that risks are higher for emerging economies," Seth said. He added that a clear understanding among G20 leaders has been reached on the building blocks required for a good set of regulations for crypto and the tentative time frame for its implementation.
“Based on the consensus that we have been able to build, we will be considering these recommendations carefully and considering our own policies and thereafter take further action," Seth said. The IMF and FSB joint synthesis paper, which was released on 7 September, has stated that a blanket ban on crypto assets may be hard to pull off, while noting that increased adoption of these assets could undermine monetary policy transmission.
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