India is hopeful of G20 leaders adopting a common template with well-defined measures for regulating cryptocurrency during the summit, government sources said on Friday. The summit, with the participation of the heads of 17 member nations along with the heads of invited nations and multilateral bodies, is scheduled to take place this weekend in the national capital.

“Consensus is almost there but is subject to approval by leaders,” a top source said. A joint synthesis paper, prepared by the International Monetary Fund (IMF) and Financial Stability Board (FSB), along with a presidential note on crypto regulation, has been circulated among member nations.

The synthesis paper apparently outlines the contours of the building blocks for effective crypto policies. At the same time, the Presidency Note by India is expected to talk about macro-economic and financial implications along with regulation of cryptos, the source added.

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“Once leaders have approved the framework, then each country is expected to chip in towards building blocks and the roadmap ahead,” the source said, adding that a standard-setting body will be required for implementing the rules after the countries agree on them.

“Somewhere, there should be a common template, and that template should consist of certain measures that are well defined,” the source said.

The European Union has already approved the world’s first comprehensive set of rules for cryptoasset markets, but the FSB’s “global baseline” minimum standards are designed to accommodate further jurisdictions. Earlier this year, the IMF laid out a nine-point action plan for how countries should treat crypto assets, including a plea not to give cryptocurrencies such as bitcoin legal tender status. In July, the FSB published recommendations on cryptocurrencies for firms trading crypto assets.

India’s stance

India has always maintained that crypto assets are, by definition, borderless and require international collaboration to prevent regulatory arbitrage. Therefore, any legislation for regulation or banning can be effective only with significant international collaboration on the evaluation of the risks and benefits and the evolution of common taxonomies and standards.

Industry players in India are hopeful that leadership summit will bring more clarity on the crypto front.

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Shivam Thakral, CEO of BuyUcoin (the Digital Asset Exchange), said India’s presidency at the G20 can bring together a collective worldwide effort to regulate and harness deep tech to its full potential.  “The recent acknowledgement of the much-needed regulatory framework for AI and Crypto will instill confidence among the Indian masses that have already adopted some forms of AI or Web3 in their lives, while the industry has set its eye on the upcoming G20 meetings for more clarity,” he said.

Om Malviya, President at Tezos India, a blockchain adoption entity, hoped that by harmonising regulations and promoting responsible crypto adoption, India could harness the full potential of blockchain technology, ensuring it benefits individuals, businesses, and economies worldwide. “It’s time for nations to come together and shape the future of crypto in a way that’s both progressive and secure,” he said.