Global Crypto Rules Will Be Formed on a New Synthesis Paper

Global crypto rules will be formed on a new synthesis paper to be based on the coming FSB

The International Monetary Fund (IMF) and the Financial Stability Board (FSB) jointly produced a new synthesis paper that will serve as the foundation for future global crypto rules, announced India as the Group of 20 (G20) Presidency in Bangalore on Saturday.

The announcement of global crypto rules will be formed came after three days of meetings in India among the world's 20 largest economies, known collectively as the G20, with a focus on developing a global regulatory framework for cryptocurrency.

The G20 Finance Ministers and Central Bank Governors' meeting was expected to chart the course for globally coordinated crypto rules.

According to Indian Finance Minister Nirmala Sitharaman during a press conference, the synthesis paper will be submitted during India's G20 Presidency, which culminates in September when India hosts G20 leaders from around the world.

When asked if the global crypto regulation consensus that India had prioritised for its G20 presidency would be reached during India's term, Sitharaman said, "First and foremost, we are going through the study process so that there can be informed discussions."

"Something should develop," Sitharaman added, referring to the FSB's expected July paper, which will lead to the September synthesis paper.

Sitharaman also stated that Canada's central bank governor warned other members that crypto assets should not be given the "regulatory seal of approval" without a well-thought-out approach and implementation framework.

"The World Bank stated that all developing countries' perspectives should be included in any (crypto) policy framework," Sitharaman added.

According to India's Central Bank Governor Shaktikanta Das, there has been a significant shift in G20's perception of crypto assets over the last year, which has seen the collapse of several major crypto companies, including FTX, and a global contagion. According to Das, there is now widespread acceptance of the risks associated with crypto assets.