At the third G20 Finance Ministers and Central Bank Governors (FMCBG) meeting, the Indian Presidency has prioritised the need to consider macrofinancial implications of crypto assets along with financial stability concerns.

The meeting was jointly chaired by Union Finance Minister Nirmala Sitharaman, and Reserve Bank of India Governor Shaktikanta Das in Gandhinagar, Gujarat.

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As per the reports, India has three main concerns on crypto currencies, which are, the need to address macroeconomic and financial-stability risks, investor protection and education, and ensuring that nothing should be done to stop technological innovation.

Members call for implementation of CARF

The member countries have called for swift implementation of the Crypto-Asset Reporting Framework (CARF) and amendments to the CRS.

They asked the global forums 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 CARF exchanges by 2027.

It is to be noted that the IMF had, in February, presented a paper on the macrofinancial implications to the 2nd G20 FMCBG. The Financial Stability Board (FSB) has also included sections on EMDE concerns in its forthcoming reports and deliberations.

In the July meeting, the G20 members welcomed the high-level recommendations of the FSB on crypto-asset activities and global stablecoin arrangements.

Amid the process of the IMF-FSB Synthesis paper is underway, the Indian Presidency has submitted a “Presidency Note” to the G20 membership laying down important inputs for a Roadmap on crypto assets.

The Synthesis Paper aims to 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.

It is to be noted that a Round Table discussion titled “Policy Dialogues on Crypto Assets” was also organized on the sidelines of the 3rd G20 FMCBG meeting.

At the meeting, the members discussed and deliberated on some of the key questions pertaining to the crypto assets, in an open and candid manner.