India asks IMF, FSB to prepare technical paper on regulating crypto
Bengaluru, Feb 25: India, which is currently holding G20 Presidency, has asked the IMF and Financial Stability Board (FSB) to jointly prepare a technical paper on crypto assets, which could be used in formulating a coordinated and comprehensive policy to regulate them.
The international organisations are expected to present their joint paper during the 4th Finance Ministers and Central Bank Governors Meeting in October 2023, said a finance ministry release.
"To complement the ongoing dialogue on the need for a policy framework, the Indian Presidency has proposed a joint technical paper by the International Monetary Fund (IMF) and the FSB, which would synthesise the macroeconomic and regulatory perspectives of crypto-assets. This would help in the formulation of a coordinated and comprehensive policy approach to crypto assets," it said.
In their entirety, the IMF's discussion paper, the policy seminar and the joint IMF-FSB paper are expected to integrate the policy questions pertaining to macro-financial and regulatory perspectives of crypto assets and facilitate a global consensus on a well-coordinated and comprehensive policy approach to crypto assets, it said.
Despite the rapid evolution of the crypto universe, there is no comprehensive global policy framework for crypto assets. Given the concerns over greater interconnectedness between crypto assets and the traditional financial sector as well as the complexity and volatility around crypto assets, policymakers are calling for tighter regulation.
The global standard-setting bodies such as the Financial Action Task Force (FATF), Financial Stability Board (FSB), Committee on Payments and Market Infrastructures (CPMI), International Organization of Securities Commissions (IOSCO) and Basel Committee on Banking Supervision (BCBS) have been coordinating the regulatory agenda, while working within their respective institutional mandates, it said.
India hopes to broaden the G20 discussion on crypto assets beyond financial integrity concerns and capture the macroeconomic implications and widespread crypto adoption in the economy, it said, adding, this will require a data-based and informed approach to the global challenges and opportunities of crypto assets, allowing G20 members to shape a coordinated and comprehensive policy response.
To inform policymakers on the broader macroeconomic and financial stability implications of crypto assets, it said, the Indian Presidency requested the IMF to prepare a discussion paper on the topic for the 2nd G20 Finance and Central Bank Deputies Meeting held in Bengaluru on 23rd February 2023.
"During the said meeting, a seminar titled "Policy Perspectives: Debating the Road to Policy Consensus on Crypto Assets" was held, as part of the Presidency's efforts to broaden the dialogue around crypto assets," it said.
The IMF speaker, Tommaso Mancini-Griffoli, presented the discussion paper during the event, highlighting the consequences of crypto adoption on the internal and external stability of a country's economy as well as on the structure of its financial system.
Mancini-Griffoli underlined that the purported benefits of crypto assets include cheaper and faster cross border payments, more integrated financial markets, and increased financial inclusion, but these are yet to be realised.
He further added that problems with interoperability, safety and efficiency cannot be guaranteed by the private sector and critical digital infrastructure/platforms for ledgers should be viewed as a public good.
He also flagged the global information gaps pertaining to the crypto asset universe and the need to build a deeper understanding of the interlinkages, opportunities and risks pertaining to crypto assets under the aegis of the G20.
The discussions covered a wide range of topics, including the need for a common taxonomy and a systematic classification of the crypto asset universe, benefits and risks of crypto assets macroeconomic policy questions that needed to be evaluated further, and financial stability issues and regulatory responses.
The statement said that the event has helped initiate a broader dialogue on crypto assets, but also raises several pertinent policy questions that policymakers and regulators need to evaluate closely.
In addition to evaluating the consequences of crypto assets to the broader economy, it said, there is also an existential question on whether crypto assets are indeed the optimal solution for existing challenges in global financial systems.
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Women of country will give you answer: Cong hits out at PM on Karnataka sex scandal
New Delhi (PTI): Stepping up attack on the BJP over sexual abuse allegations against JD(S) leader Prajwal Revanna in Karnataka, the Congress of Monday alleged that the Modi government has "always protected" those who commit crimes against women.
Former All India Mahila Congress chief Netta D'Souza said the BJP has only given slogans such as 'Beti Bachao, Beti Padhao', but the reality is there before the people of the country.
"Be it the brave women wrestlers or daughters like Ankita Bhandari, the prime minister did not try to provide justice to any daughter. The BJP government has always protected those who commit crimes against women," she alleged at a press conference at the AICC headquarters here.
"The women of the country are very angry on the issue of Prajwal Revanna. Women are forced to think that the real character of the person, who was under the protection of Modi ji inside Parliament for the last 5 years, has been revealed to the country," she said.
"If someone else had done the same thing then Modi ji would have been saying all over the country -- 'Look, we have caught the criminal to protect our daughters'," D'Souza said.
"But now when it comes to his favourite person, his attitude is in front of the entire country," she said.
While the Congress has been attacking the BJP over the allegations of sexual abuse against leaders of its ally JD(S), the BJP has blamed the Congress government in Karnataka for the "delayed" action against the accused and said it would push for the full might of law against the accused.
D'Souza said PM Modi had shared the stage with Prajwal Revanna, who is seeking re-election from Hassan Lok Sabha seat, and sought votes for him.
"If Modi is there, then it is possible for Prajwal Revanna to flee abroad. If Modi is there, then it was possible for Prajwal Revanna to sit in Parliament. But today Narendra Modi, Amit Shah and Smriti Irani are silent," she said.
"Modi ji was saying that the vote given to Prajwal Revanna would strengthen him. Now the women of the country will give you an answer on '400 paar'," she said, referring to the BJP's election slogan.
Prajwal and his father H D Revanna were booked by police on Sunday on charges of sexual harassment and criminal intimidation based on a complaint from a woman who worked in their household.
Prajwal is the grandson of former prime minister H D Deve Gowda and a nephew of Karnataka's former chief minister H D Kumaraswamy.
Faced with unrelenting attacks from the Congress and other political parties, the JD(S), an ally of the BJP, has suspended Prajwal.
Karnataka JD(S) MLA H D Revanna was arrested by the Special Investigation Team on Saturday in a kidnapping case linked to sexual abuse allegations against his son Prajwal soon after a court rejected his anticipatory bail plea.
Karnataka Home Minister Dr G Parameshwara on Sunday said a 'Blue Corner' notice has been issued and Interpol's help is being taken to bring Prajwal Revanna back to India.
