G20 Welcomes FSB’s Tougher Crypto Rules, Says Presidency Holders India
The Group of Twenty (G20) welcomed the high-level recommendations of the Financial Stability Board (FSB) on crypto asset activities and global stablecoin arrangements, said Nirmala Sitharaman, Finance Minister of India, which currently holds the G20 presidency during a press conference on Tuesday.
On Monday, international standard-setter FSB called for tougher rules on safeguarding crypto clients’ assets and avoiding conflicts of interest, after multiple allegations of bad behaviorr emerged during crypto’s recent turbulent year. The recommendations follow a consultation in which traditional finance companies pushed for stronger crypto controls, while the likes of Binance and Coinbase have warned that tougher rules could constrain innovation.
Stablecoin regulation is a sticking point between the Group of Seven (G7) and the G20, CoinDesk has previously reported, but Sitharaman said the G20 welcomes the FSB’s recommendations for oversight over stablecoins.
The announcement was made after the third Finance Ministers and Central Bank Governors held in eastern India’s Gandhinagar, Gujarat over the past few days.
India’s presidency note on crypto was also presented in discussions that stretched late into Monday night, said Sitharaman. It isn’t clear what the note said precisely but local reports have said the note was expected to summarize the work that has been done by various countries and institutions.
“Members also discussed the presidency note that India had prepared and noted that it would be an important input towards prioritizing areas of work essential for achieving a comprehensive cohesive and coordinated global policy and regulatory framework,” said Sitharaman.
It isn’t clear whether the FSB recommendations and the joint synthesis paper of the FSB and International Monetary Fund (IMF) expected in September, will result in the G20 nations agreeing to follow regulations or a template for crypto rules globally.