IMF, others to give G20 regular updates on crypto roadmap implementation: FM

Finance Minister Nirmala Sitharaman, External Affairs Minister S jaishankar, G20 Sherpa Amitabh Kant, and Economic Affairs Secretary Ajay Seth addressing the media at the conclusion of the virtual G20 Leaders’ Summit on November 22.

Global multilateral agencies will be providing regular updates to the G20 on the implementation of the crypto regulation roadmap, Finance Minister Nirmala Sitharaman has said.

"The G20 has formally adopted the roadmap (for crypto)... The IMF, FSB, and the FATF will be required to provide regular updates to the G20 regarding the progress and implementation of the G20 roadmap on crypto assets," Sitharaman said on November 22, referring to the International Monetary Fund (IMF), the Financial Stability Board (FSB), and the Financial Action Task Force (FATF).

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The Union minister for finance was speaking to the media at the conclusion of the virtual G20 Leaders' Summit, which effectively marked the end of India's Presidency.

A joint synthesis paper of the IMF and the FSB, submitted to the G20 in September, had outlined policy recommendations and standards 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 decentralised finance.

According to the paper, the IMF will collect "test" data on crypto used to make payments by the end of 2025. Aside from data collection, the synthesis paper also listed a detailed policy implementation roadmap for various other aspects, including the integration of crypto-asset policies by the IMF into its Article IV assessments and Financial Sector Assessment Program, an outreach programme through IMF regional training centres, and the IMF and World Bank to integrate recommendations for a comprehensive framework for cryptoassets as part of technical assistance and capacity building.

"It was very clearly mentioned that not just the G20 countries, but also beyond that - which means FSB members, who are more than a hundred - will all have to be now contacted by FSB, G20, and others to see that an effective mechanism is placed in each of the countries so that nowhere there is a loophole in controlling the crypto assets," Sitharaman said on November 22.

It is expected that countries will form their own laws on crypto over and above a minimum set of global regulations. However, the aforementioned synthesis paper has warned that a "blanket" ban on crypto activity would be difficult to enforce.

When asked when India would be looking to frame its laws over and above the roadmap, the finance minister said these were still very early days.

"At this stage beyond that, there is no timeline given... When we move to the Brazilian presidency, given the momentum that the crypto assets issue has picked up in G20, if there is anything emerging we will know at that time. At the moment, the content of the roadmap is what is before us to act on," Sitharaman said.

She also said the exact contours of the global Social Impact Fund proposed by Prime Minister Narendra Modi to spread digital public infrastructure are yet to be finalised.

In his opening remarks at the virtual summit, PM Modi proposed the creation of a global social impact fund to spread and implement Digital Public Infrastructure (DPI) in the countries of the Global South, with India initially contributing $25 million to this fund.

A senior government official said details on the fund will be made public "in a few days".