The International Monetary Fund (IMF) and the G20's Financial Stability Board (FSB) have submitted a proposal on cryptocurrency regulations to be discussed at this weekend's leaders' summit in New Delhi, according to a government source on Wednesday. The proposal includes a paper on cryptocurrencies that has been circulated among the participating countries, with India preparing a presidential note containing a summary of the report.
The IMF and FSB's recommendations build upon the FSB's earlier guidelines issued in July for firms trading crypto assets, following suggestions from the G20. The IMF is set to add to these recommendations and produce a synthesis paper to assist G20 countries in framing rules for cryptocurrencies.
Earlier this year, the IMF proposed a nine-point action plan advising countries on how to handle crypto assets. The plan included a recommendation against granting cryptocurrencies such as Bitcoin legal tender status. The implementation of these directives will be overseen by the IMF and the FSB once they are agreed upon by the G20 countries.
A senior government source emphasized the need for a common template consisting of well-defined measures. The source also mentioned that a standard-setting body will be required for implementing these rules post-agreement.
This proposal comes after the European Union approved the world's first comprehensive set of rules for cryptoasset markets. However, the FSB's "global baseline" minimum standards aim to accommodate jurisdictions seeking more stringent regulations.
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