g20

Indian Finance Minister Says Crypto Assets Cannot Be Currencies — Expects ‘Some Framework Emerging’ From G20 Discussion

March 17, 2024 Bitcoin.com

G20 adopts IMF-FSB Synthesis paper on crypto regulation

October 13, 2023 Coin Telegraph

The Group of Twenty accepted the regulatory roadmap proposed in a joint Synthesis paper of the International Monetary Fund and the Financial Stability Board in September.

On Oct. 13, the Group of Twenty (G20), an international forum for the governments and central banks of countries with developed and developing economies, unanimously adopted the G20 Finance Ministers and Central Bank Governors Communique during its meeting in Marrakesh, Morocco.

Regarding crypto, the G20 accepted the regulatory roadmap proposed in a joint Synthesis paper of the International Monetary Fund (IMF) and the Financial Stability Board (FSB) in September. As the G20 statement goes:

“We call for swift and coordinated implementation of the G20 Roadmap, including implementation of policy frameworks; outreach beyond G20 jurisdictions; global coordination, cooperation and information sharing; and addressing data gaps.”

The IMF-FSB Synthesis Paper advocates for comprehensive supervisory oversight of crypto instead of a blanket ban. Its high-level recommendations include cross-border cooperation and information sharing between regulators, a demand for comprehensive governance and risk management frameworks for crypto companies, and a guarantee of access to relevant data provided by companies to the authorities.

According to the Paper, the first review of the proposed measures' implementation status should happen by the end of 2025.

In October, the IMF published another working paper titled “Assessing Macrofinancial Risks from Crypto Assets.” Within it, the IMF researchers propose a crypto-risk assessment matrix (C-RAM) for countries to spot indicators and triggers of potential risks in the sector.

Regulators worldwide have been calling for a global framework on crypto recently. Mário Centeno, the governor of Banco de Portugal, urged for international cooperation to set up a “robust framework” and avoid the possibility of “regulatory arbitrage.” Roughly the same sentiment was expressed by the executive director of strategy, policy and control at the German Federal Financial Supervisory Authority, who prompted about the inconsistencies existing on a global scale.

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G20 nations reaffirm responsible use and development of AI technology

September 11, 2023 Coin Telegraph

Coin Telegraph

The G20 member nations recommended addressing existing concerns around data protection, biases, appropriate human oversight, and ethics to ensure the responsible use and development of AI.

As India handed over the G20 Presidency to Brazil, the member nations have committed to harnessing artificial intelligence (AI) technology in a responsible manner in addition to planning for a future involving crypto assets and central bank digital currencies (CBDC).

The G20 leader’s declaration document highlighted technology’s role in bridging digital divides globally. In doing so, it acknowledged G20’s interest in curating policies and regulations for cryptocurrencies and the potential of CBDCs in cross-border payments.

*Group of 20 member nations overview. Source: G20*

The members of the G20 — which include Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States and the European Union — see AI as a tool for prosperity and expansion of the global digital economy.

“It is our endeavor to leverage AI for the public good by solving challenges in a responsible, inclusive and human-centric manner, while protecting people’s rights and safety.”

However, to ensure the responsible use and development of AI, the G20 member nations recommended addressing existing concerns around data protection, biases, appropriate human oversight, and ethics to name a few. The G20 nations’ AI “for good and for all” commitment read:

“To unlock the full potential of AI, equitably share its benefits and mitigate risks, we will work together to promote international cooperation and further discussions on international governance for AI.”

In addition, the members reaffirmed their commitment to G20 AI Principles, drafted in 2019, which details global policies and cooperation around building “trustworthy AI.” The G20 also agreed on taking a “pro-innovation regulatory/governance approach” that can help reap the maximum benefits of AI while potentially mitigating any associated risks.

The drive to build responsible AI will also aim to achieve the 17 Sustainable Development Goals (SDGs) set by the United Nations (UN) to further peace and prosperity around the world.

India’s Minister of Finance Nirmala Sitharaman confirmed that G20 members are working toward establishing a global crypto framework.

*Indian Finance Minister Nirmala Sitharaman speaking about establishing global crypto regulations. Source: Global Fintech Fest*

During the summit, Sitharaman highlighted the need for global cooperation to help regulate cryptocurrencies worldwide.

“In an interconnected world, financial technology transcends borders, therefore making cross-border partnerships absolutely crucial,” she concluded.

G20 moves forward with international crypto framework

September 9, 2023 Coin Telegraph

Coin Telegraph

The upcoming framework will affect users in several countries by automatically exchanging information about crypto transactions between jurisdictions on an annual basis.

Leaders of the 20 biggest economies in the world — collectively known as G20 — are pushing for a speedy implementation of a cross-border framework for crypto assets.

According to local reports in New Delhi — where the group members are attending for a two-day summit — the framework will facilitate information exchange between countries beginning in 2027.

“We call for the swift implementation of the Crypto-Asset Reporting Framework (CARF) and amendments to the CRS [Common Reporting Standard]. We ask the Global Forum on Transparency and Exchange of Information for Tax Purposes to identify an appropriate and coordinated timeline to commence exchanges by relevant jurisdictions,” noted a consensus declaration signed by G20 leaders.

Several countries would be affected by the upcoming framework, including Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom and the United States, as well as the European Union. Two-thirds of the world's population lives in a G20 country.

At the One Family Session of the G20 Summit, elaborated on how to collectively think about empowering fellow humans and making our planet more inclusive as well as sustainable.

Gave the example of how technology has been leveraged to bring a positive difference in the lives of… pic.twitter.com/SqT9OjStps
— Narendra Modi (@narendramodi) September 9, 2023

The Crypto-Asset Reporting Framework was first introduced in October 2022 by the Organization for Economic Cooperation and Development (OECD). The document was designed to give tax authorities greater visibility into crypto transactions, as well as the individuals behind them.

Under the proposed framework, countries would automatically exchange information on crypto transactions between jurisdictions annually, covering transactions on unregulated crypto exchanges and wallet providers.

Crypto transactions are already subject to new disclosure standards in many countries. In May, the European Union approved updated rules to adhere to the CARF, setting procedures for automatic information sharing between European governments for tax purposes. As per the new rules, transfer of digital assets should be accompanied by the name of the beneficiary, the beneficiary's distributed ledger address, as well as the beneficiary's account number.

The group also endorsed recommendations from the Financial Stability Board (FSB) for the "regulation, supervision and oversight of crypto-assets activities and markets and of global stablecoin arrangements," according to the announcement. Published in July, the recommendations set similar standards for stablecoins as commercial banks, and urge regulators to prohibit any activities hindering the identification of involved participants, among other recommendations.

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India G20 confirms ‘active discussions’ around global crypto framework

September 6, 2023 Coin Telegraph

Coin Telegraph

Sitharaman said crypto was a “threat as well as an opportunity” while confirming that the G20 members are working toward this vision of establishing a global crypto framework.

Under India's G20 presidency, active discussions around establishing a global framework for cryptocurrencies are underway, India’s minister of finance Nirmala Sitharaman has said.

On Aug. 28, Indian Prime Minister Narendra Modi pushed for global collaboration on formulating crypto regulations among G20 (Group of 20) member states, which include 19 countries and the European Union. Modi believes that emerging technologies — like cryptocurrencies — that have global impact should be accompanied by regulations and framework that is adhered to globally.

Sitharaman confirmed that the G20 members are working toward this vision of establishing global crypto framework during the Global Fintech Fest on Sept 5.

*Indian Finance Minister Nirmala Sitharaman on establishing global crypto regulations. Source: Global Fintech Fest*

During the summit, Sitharaman said crypto was a “threat as well as an opportunity.” She highlighted the need for global co-operation to build a responsible financial ecosystem that can effectively help regulate cryptocurrencies worldwide. “Global co-operation is absolutely critical,” she added.

“In an inter-connected world, financial technology transcends broders, therefore, making cross-border partnerships absolutely crucial.”

Ever since India took over the G20 presidency in Q4 2022, the country consistently highlighted the need for global collaboration when it comes to financial security and stability. However, the finance minister confirmed that G20 members are together working on the the highly anticipated crypto regulations.

“India’s (G20) presidency has laid out issues related to regulating or understanding that there should be a framework for handling issues related to crypto assets. Active discussions are happening, content-rich papers from institutions like IMF, FSB, OECD are all being discussed on various issues.”

Sitharaman also confirmed that the International Monetary Fund (IMF) and the Financial Stability Board (FSB) have submitted their synthesis papers on cryptocurrency.

India’s rising interest in blockchain and crypto becomes more evident after the National Payments Corporation Of India’s (NPCI) recent job posting. NPCI, an initiative led by the Reserve Bank of India (RBI) and 247 Indian banking companies, is looking to hire a head of blockchain.

*NPCI’s job posting for a head of blockchain. Source: LinkedIn*

The ideal candidate will be a seasoned technologist with at least six years of experience in developing and implementing blockchain, who will be primarily tasked with identifying “avenues wherever blockchain-driven solutions can be used.”

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India puts forward suggestions for G20 crypto roadmap

August 2, 2023 Coin Telegraph

Coin Telegraph

The country emphasises the necessity of dealing with digital assets’ risks for developing economies.

India, the nation currently presiding in the G20, supported the Financial Stability Board’s recommendations for the global crypto framework, published in July. The country also emphasises the necessity of dealing with digital assets’ risks for developing economies.

On August 1, India’s Presidency Note for input in a roadmap on a global framework for crypto was published on the page of G20, an intergovernmental forum of the 20 largest economies in the world. The document concurs with the guidelines, written by the FSB, the Financial Action Task Force (FATF) and International Monetary Fund (IMF).

However, the Presidency Note suggests some additions. Among them is an emphasis on developing countries — while the IMF pays attention to developing economies’ specifics in its potential guidelines for crypto, India urges FSB to implement them as well. It also calls for outreach to all jurisdictions to “generate awareness of risks”, starting from countries with higher crypto adoption, and to extend the future regulatory approach to the digital economy beyond the G20 scope.

As revealed in the Note, the so-called Synthesis Paper by IMF and FSB will come out at the end of August and provide a broad roadmap to be considered for adoption by the G20.

In July, FSB published its guidelines for crypto and stablecoins in particular. The FSB states that crypto platforms must segregate clients’ digital assets from their own funds and clearly separate functions to avoid conflict of interest, with regulators ensuring tight cross-border cooperation and oversight. The guidelines also include the obligation for stablecoin issuers to obtain a national license in any single jurisdiction before they can operate there.

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G20 Urges Global Crypto Rules To Put End to Regulatory Arbitrage: Reuters

July 19, 2023 The Daily Hodl

BIS gives CBDCs a thumbs up, crypto the middle finger in reports to G20 ministers

July 11, 2023 Coin Telegraph

BIS

G20 finance ministers and central bank governors are meeting this month, and the Bank for International Settlements has findings to present.

In preparation for a meeting of the G20 finance ministers and central bank governors this month, the Bank for International Settlements Innovation Hub (BISIH) submitted two reports — on cryptocurrency and central bank digital currencies (CBDCs) — on July 11. The reports reached very different conclusions about the related technologies.

The BISIH report on crypto is the shorter of the two publications at 24 pages. It provided a short overview of the crypto ecosystem of cryptocurrencies, stablecoins and decentralized finance (DeFi), followed by a laundry list of “[s]tructural flaws and risks.”

The crypto report rehashes some common issues, such as the centralization of much crypto trading, the instability of stablecoins and the purported irreversibility of smart contracts. It raises some relatively little-discussed points, such as the inescapable centralization of DeFi due to the need for an oracle.

Another comparatively rare insight the BISIH crypto report provided was the risk from human nature. Crypto investors, it pointed out, are inclined to chase prices — that is, buy high and sell low — just as is often seen in traditional finance.

*Bitcoin price versus crypto exchange usage. Source: The Bank for International Settlements*

But the BISIH saw the real risk from crypto as its growing interconnectedness with the real economy. “Institutional investors and households continue to show interest in crypto despite the events of the past year,” the report said, referring to the recent crypto winter. In addition, increasing tokenization of assets could encourage the growth of the crypto market further, the report claimed, without explaining the mechanism for it. Stablecoins could bring on “cryptoisation” of economies, where cash is squeezed out.

The BISIH, along with the central banks of Germany and the Netherlands, has started Project Atlas to visualize cross-border crypto flows, but “further steps are needed for a holistic assessment of crypto markets.” The report concluded:

“Crypto’s inherent structural flaws make it unsuitable to play a significant role in the monetary system.”

The BISIH has implemented 12 CBDC proofs-of-concept or prototypes over the past three years, out of 29 total projects, and has learned valuable lessons, it stated in its CBDC report. The report considers the variables of wholesale versus retail CBDCs and their desirability, feasibility and viability.

The tone of the report differed markedly from the crypto text:

“By underpinning the future monetary system, CBDCs would be the foundation upon which further innovations build.”

The report summarized the mass of findings from all 12 projects and suggested ways the information could be used. It provided grounds for a research gap analysis, first of all. “Experimenting under the BISIH umbrella allows projects to build iteratively on one another,” the report said.

A new #BISInnovationHub report to the G20 explores the key insights and lessons learnt from 12 CBDC projects that cover retail and wholesale, both in a domestic and cross-border context. Read more https://t.co/kIIotdl1DS #G20India pic.twitter.com/mZeOAC2LAE
— Bank for International Settlements (@BIS_org) July 11, 2023

Also, BISIH projects could encourage a “modular approach,” in which components such as payment, foreign exchange and compliance could be “decoupled” from projects for more general use. More CBDC projects are coming, the BIS promised.

Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.

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G20 countries aim to develop global framework against crypto-related risks

April 11, 2023 Coin Telegraph

Coin Telegraph

The G20 also aims to bring together global economies to fight debt distress and hyperinflation in smaller economies like Sri Lanka and Ghana.

The G20 — an intergovernmental forum comprising 19 countries and the European Union — has planned to develop a common framework for helping all countries deal with risks associated with cryptocurrency investments.

Under India’s presidency, the G20 called for coordinated global crypto policies — a vision put forth by the country’s finance minister, Nirmala Sitharaman. However, with multiple ecosystem collapses impacting investors worldwide, Sitharaman believes disparate reforms will not help address the global reach of cryptocurrencies.

*Union Finance Minister Nirmala Sitharaman arrives for a business roundtable meeting organized by US India Business Council, in Washington. Source: Press Trust of India*

Speaking at the Peterson Institute for International Economics in Washington DC, she highlighted the numerous crypto collapses while revealing the need for a coordinated effort from all jurisdictions:

“Cryptocurrencies are a very important part of the discussion under the #G20India presidency, given so many collapses and shocks in cryptocurrencies. We seek to develop a common framework for all countries to deal with this matter.”

Moreover, Sitharaman also disclosed G20’s aim to bring together global economies to fight debt distress and hyperinflation in smaller economies such as Sri Lanka and Ghana. In this regard, she said:

“In G20, there is an opportunity for India to bring all countries together to address debt distress in middle-income and low-income countries. Multilateral institutions are coming up with resolutions for debt-laden countries in 3 to 5 years’ time.”

India’s G20 presidency will end on November 30, 2023, leaving roughly seven months for the group of 20 nations to carve out blanket crypto reforms that could be implemented across jurisdictions.

On the other hand, the previously struggling economy of El Salvador showcased the importance of an asset like Bitcoin (BTC) in reducing the impact of hyperinflation and dependence on the U.S. dollar.

India’s home-grown payment network, the unified payments interface (UPI), is also on an expansion drive.

UPI goes Global!

Since UPI was introduced as a payment system in India, it has revolutionised the lives of Indians, but in fact, India’s digital payment system is steadily becoming globally attractive & is being adopted by other countries.#indiafirst #IndiaSingaporeRelations pic.twitter.com/55sGh5bzbZ
— MyGovIndia (@mygovindia) February 21, 2023

Singapore’s PayNow rapid payment system recently integrated UPI to allow swift cross-border payments. At the time of the announcement, it was revealed that the State Bank of India, Indian Overseas Bank, Indian Bank and ICICI Bank would facilitate outgoing remittances, with Axis Bank and DBS Bank India facilitating incoming remittances.

India Brings Crypto Transactions Under Prevention of Money Laundering Act

March 11, 2023 Bitcoin.com

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