G20 Nations Welcome FSB's Tougher Crypto Rules, Says Presidency Holder India

On Monday, international standard-setter FSB called for tougher rules on safeguarding crypto clients’ assets.

AccessTimeIconJul 18, 2023 at 1:05 p.m. UTC
Updated Jul 18, 2023 at 3:05 p.m. UTC

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 behavior 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 meeting held during India's presidency 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.

In addition to the FSB recommendations, the G20 will be presented a joint synthesis paper of the FSB and International Monetary Fund (IMF) that focuses on the global macro implications of crypto in September. That's when the position of the G20 on crypto during India's presidency will be finalized.

India’s central bank governor Shaktikanta Das said a Jan. 2023 paper from the Bank of International Settlements (BIS), which includes crypto bans as a policy option alongside regulation, reflects “huge risks” in crypto, something “we have been saying” for years.

Das also spoke to the G20’s discussions on central bank digital currency (CBDC), saying that there has been a "perceptible change in thinking … that CBDC is an important aspect which needs to be looked at more seriously."

"It was also recognized that there is great potential for CBDC to facilitate easier, smooth and seamless cross border transactions and cross border payments, and there's a need to take this agenda forward," Das said, adding that digital versions of fiat "will mean a fundamental change in the currency system."

Central banks around the world are studying the issue, and a recent study by the Bank for International Settlements found around 15 retail CBDCs are likely to be in circulation by 2030.

UPDATE (July 18, 13:33 UTC): Adds details throughout.

Edited by Nelson Wang.


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Amitoj Singh

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Jack Schickler

Jack Schickler was a CoinDesk reporter focused on crypto regulations, based in Brussels, Belgium. He doesn’t own any crypto.