India to take call on its policy stance on crypto, says DEA Secy | Business News
Following an endorsement for a regulatory framework for crypto under G20, India will take a call on its policy stance on crypto in the coming months after global consultations, Economic Affairs Secretary Ajay Seth said on Sunday.
“The framework for assessing risk has been put together by the G20. What will be a sound policy, keeping that framework in mind now, we’ll have to analyse our own position with the reference to what globally the leaders have agreed to that they will travel together. Given those, what is our position, it will be decided in the coming months,” he said.
Seth said the work done by the IMF, FSB, FATF and BIS is a very clear and comprehensive understanding of the policy framework for assessment of risk.
“The earlier work on the stable coins as well as the unbacked crypto assets, their regulations, high level principles for regulations, oversight and supervision have also been endorsed by the leaders. There is a clear recognition that the risk can be higher for emerging economies. What are the building blocks for a good set of regulations and who has to do it, what kind of timeframe, on all this a clear understanding has been reached. Further, those agencies working with jurisdictions will be taking it forward,” he added. An official said that the issue should not be seen in the binary of banning or regulating crypto.
“You want to ban it (crypto), go ahead and ban it. But if the rest of the countries are not banning it, it will be extremely difficult for one country to ban it. Now that discussion, we have to take up and try to build a consensus on regulation. Then we gradually decide on our own system. The discussion will happen now in our system. It is not an easy one,” the official said.
On Thursday, the International Monetary Fund (IMF) and the Financial Stability Board (FSB), released a policy paper, at the request of the Indian G20 Presidency, which recommended against an outright ban on crypto-assets.
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Instead, it suggested introducing a licensing regime for crypto-asset platforms bringing the asset under the fold of anti-money laundering and counter-terrorist financing standards.
The G20 leaders endorsed the IMF-FSB synthesis paper on crypto. During a press briefing Saturday,
Finance Minister Nirmala Sitharaman said that the report released by the IMF and FSB will be discussed further by members during the World Bank Group-IMF Annual Meeting in October, to draw out specific contours for a global framework. She, however, refused to comment on whether that could involve a regulatory framework or an outright ban.
