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IMF, FSB, FATF to update G20 nations, others on implementing roadmap for crypto assets, says FM

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IMF, FSB, FATF to update G20 nations, others on implementing roadmap for crypto assets, says FM

  • Recently, the Finance Minister revealed that the International Monetary Fund (IMF), Financial Stability Board (FSB) and Financial Action Task Force (FATF) will provide regular updates to G20 member nations and others on the progress of implementing the G20 roadmap for crypto assets.

Key Highlights

  1. Adoption of G20 Roadmap
  • The G20 has formally adopted the roadmap for crypto assets.
  • The Indian presidency will collaborate with the Brazilian Presidency to oversee the roadmap's implementation.
  1. Timeline and Updates
  • No specific timeline for countries to implement the roadmap has been established.
  • The IMF, FSB, and FATF are mandated to provide regular updates to the G20 on the progress of implementing the G20 roadmap.
  1. Global Coordination
  • Discussion emphasised the need for effective mechanisms in all countries, including FSB members, to prevent loopholes in controlling crypto assets.
  • The initial phase will involve creating a template for nations to develop their legislative frameworks.
  1. G20 Finance Track Issues
  • The five main agenda points discussed over the year were reiterated and welcomed by G20 members.
  • There were discussions focused on enhancing multilateral development banks and exploring collaborations in areas such as innovative finance.
  • India has signed MoUs with seven countries for digital public infrastructure.
    • These include Antigua & Barbuda, Armenia, Sierra Leone, Suriname, Papua New Guinea, Tanzania and Trinidad & Tobago.
  • MoUs involve cooperation for digital solutions and advancing cross-border acceptance of UPI QR at merchant establishments.
  • The Prime Minister proposed a global Social Impact Fund to spread DPI, with India's initial contribution set at $25 million.
  1. IMF and FSB Policy Paper
  • In September, the IMF and FSB released a policy paper against an outright ban on crypto assets.
  • They recommended implementing a licensing regime for crypto-asset platforms, aligning with anti-money laundering and counter-terrorist financing standards.

Prelims Takeaway

  • International Monetary Fund (IMF)
  • Financial Stability Board (FSB)
  • Crypto Currency

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