After a successful G20 Summit in New Delhi in September 2023, India will host a G20 Virtual Summit on November 22. This will be the first time that any country will host such a Virtual Summit, following the main Summit. The Virtual Summit will be the last major event under India’s G20 Presidency before Brazil takes over as the G20 President on December 1.
One of the significant highlights—and talking point—of India’s G20 Presidency was widening the scope of the policy framework to consider the macro-financial implications of crypto assets. This was necessitated to address the full range of risks posed by crypto assets, including risks specific to Emerging Markets and Developing Economies.
The Indian Presidency has been able to push toward clearer policies on crypto assets by bringing consensus on the need to broaden the scope of ongoing work on crypto assets. The G20 Finance Ministers and Central Bank Governors (FMCBG) have also adopted the detailed and action-oriented G20 policy roadmap on crypto assets.
At CoinSwitch, we led the effort on behalf of the industry even before India assumed the Presidency, and we had been urging the Government to use the G20 platform to initiate discussions on global crypto assets policy and regulations amongst the world’s most powerful economies. We were therefore very pleased when the ‘global crypto assets regulatory framework’ was formally included by India under the G20 Finance track.
We continue to engage with the full range of stakeholders on the issue of domestic crypto assets regulations, particularly with the Ministry of Finance. During India’s G20 Presidency, as a founding member of the Bharat Web3 Association (BWA), we have hosted events to demystify Web3 and VDAs with India’s IT ministry, Consumer Affairs Ministry, engaged with Parliamentarians from across the political spectrum to drum up support, as well as with G20 member nations to exchange policy notes, best practices and explore collaboration possibilities.
G20 deliberations on crypto assets
Across various cities and in different formats, all G20 stakeholders discussed multiple facets of crypto assets over the last 12 months. A rich analysis addressing wide-ranging issues surrounding the sector is now available in the public domain and will be the basis for future policy and regulatory response by member countries/jurisdictions.
The CoinSwitch Public Policy team has carefully curated a reading list for all policy enthusiasts to easily access and analyze all important crypto-related documents/reports. We hope you find the G20 crypto knowledge repository useful and contribute to effective crypto policy dialogue to foster innovation subject to safeguards. As always, feel free to reach out to any member of the Public Policy team for any further information or clarification that you wish to seek.
|G20 Chair’s Summary and Outcome Document, First G20 Finance Ministers and Central Bank Governors (FMCBG) Meeting Bengaluru, February 2023
The outcome document and the Chair’s summary of the first meeting of G20 FMCBG welcomes the ongoing work by the Financial Stability Board (FSB) and international standard setters to ensure that the crypto-assets ecosystem, including so-called stablecoins, is closely monitored and subject to robust regulation, supervision, and oversight to mitigate potential risks to financial stability
|IMF G20 Note on the Macro financial Implications of Crypto Assets, February 2023
This paper focuses on the macrofinancial implications of crypto assets. It limits the analysis to potential costs and benefits as well as open questions and data needs, with the intention to spur further discussion on policy responses
|FSB Report on the Financial Stability Risks of Decentralised Finance, February 2023
This report describes the DeFi ecosystem, its key elements and players, as well as the main products; discusses financial vulnerabilities of DeFi, including those stemming from its specific features; sketches possible scenarios for DeFi and the implications for financial stability; and sets out additional work to analyse, monitor and address vulnerabilities in the DeFi ecosystem.
|IMF Policy Paper: Elements of Effective Policies for Crypto Assets, February 2023
To frame the discussion, the paper defines and classifies crypto assets based on their underlying features and describes their purported benefits and potential risks. The paper presents a policy framework for crypto assets that aims to achieve key policy objectives such as macroeconomic stability, financial stability, consumer protection, and market and financial integrity
|G20 Outcome Document and Chair’s Summary. Third G20 Finance Ministers and Central Bank Governors Meeting, July 2023
The outcome document and Chair’s Summary endorses the FSB’s high-level recommendations for the regulation, supervision and oversight of crypto-assets activities and markets and of global stablecoin arrangements. It asks the FSB and standard-setting bodies (SSBs) to promote the effective and timely implementation of these recommendations in a consistent manner globally to avoid regulatory arbitrage.
In line with the mandate of the FSB, the focus of this report is on regulatory, supervisory and oversight issues relating to crypto-assets to help foster safe innovation. In total, there are 9 final recommendations.
|FSB’s high-level recommendations for the regulation, supervision, and oversight of global stablecoin arrangements, July 2023
The recommendations seek to promote consistent and effective regulation, supervision and oversight of global stablecoin arrangements (GSCs) across jurisdictions to address the potential financial stability risks they pose, both at the domestic and international level, while supporting responsible innovation and providing sufficient flexibility for jurisdictions to implement domestic approaches. In all, there are 10 recommendations in the report.
|BIS Report on “The crypto ecosystem: key elements and risks” July 2023
This report reviews the key elements of the crypto ecosystem and assesses its structural flaws. It then goes over the risks that it poses and discusses options for addressing them. It also identifies data gaps and discusses ways to alleviate them
|G20 Presidency Note, August 2023
The note provides an important input for the IMF-FSB Synthesis Paper, which will incorporate a Roadmap on Establishing a Global Framework for Crypto Assets. This is the only such note to be released under any track during India’s G20 Presidency.
|G20 New Delhi Leaders’ Declaration, September 2023
Declaration endorses the Financial Stability Board’s (FSB’s) high-level recommendations for the regulation, supervision and oversight of crypto-assets activities and markets and of global stablecoin arrangements. It also welcomes the IMF-FSB Synthesis Paper, 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.
|IMF-FSB Synthesis Paper: Policies for Crypto-Assets, September 2023
This paper is one of the major deliverables under India’s G20 Presidency on crypto. The collective recommendations provide comprehensive guidance to help authorities address the macroeconomic and financial stability risks posed by crypto-asset activities and markets, including those associated with stablecoins and those conducted through DeFi.
The paper concludes with an implementation roadmap.
|Communiqué. Fourth G20 Finance Ministers and Central Bank Governors Meeting, October 2023
The communiqué calls for swift and coordinated implementation of the G20 Roadmap, including implementation of policy frameworks; outreach beyond G20 jurisdictions; global coordination, cooperation and information sharing; and addressing data gaps.
|OCED Secretary-General Tax Report to G20 Finance Ministers and Central Bank Governors, October 2023
The report asks the Global Forum on Transparency and Exchange of Information for Tax Purposes (“Global Forum”) to identify an appropriate and coordinated timeline to commence exchanges by relevant jurisdictions, noting the aspiration of a significant number of these jurisdictions to start Crypto-Asset Reporting Framework (CARF) exchanges by 2027 and to report to our future meetings on the progress of its work
|IOSCO Report on Policy Recommendations for Crypto and Digital Asset Markets, November 2023
The report contains 18 recommendations that are central to the delivery of a coordinated global regulatory response to the significant investor protection and market integrity risks posed by centralized cryptoasset intermediaries called crypto asset service providers (CASPs). This report is a key component of the international framework for these markets envisaged by the G20 and the FSB. The recommendations are outcomes-focused and based on the principle of “same activity, same risk, same regulatory outcome”.