India, UK discuss need for robust global approaches to deal with crypto-assets
India has been giving a push to a collaborative approach towards cryto-assets and digital payment systems as part of the priorities for its G20 presidency.
NEW DELHI: Indian and British officials on Wednesday discussed the need for “robust global approaches” for dealing with crypto-assets and explored new areas for collaboration, including regulatory frameworks for pension funds.
These issues figured in the second meeting of the India-UK Financial Markets Dialogue, which was held in London to deepen bilateral ties in the financial sector. This was the first in-person financial dialogue between the two sides since 2017.
The dialogue focused on six themes – banking, payments and crypto-assets, insurance and reinsurance, capital markets, asset management, and sustainable finance. Following the discussions between the officials, private sector partners, led by the co-chairs of the India-UK Financial Partnership (IUKFP), Bill Winters and Uday Kotak, joined the talks.
“Participants discussed international developments regarding crypto-assets, and the importance of robust global approaches, and progress in delivering the G20 Roadmap for Enhancing Cross-border Payments,” said a joint statement issued after the dialogue.
India has been giving a push to a collaborative approach towards cryto-assets and digital payment systems as part of the priorities for its G20 presidency.
The participants identified emerging areas for collaboration, including knowledge exchange on regulatory frameworks for pension funds (PFs), potential investment opportunities for PFs, and the development of ecosystems including technology-based solutions for social stock exchange, the joint statement said.
Both sides also discussed the possibility of further technical discussions on effective regulation of environmental, social and governance (ESG) rating providers. They also reiterated their commitment to collaboration on opportunities offered by GIFT-IFSC across verticals, including capital markets for dual listing, sustainable finance, fund management and reinsurance.
The two sides also took up matters related to the insurance sector, including UK updates on “Solvency II” reforms and a consultation on introduction of an Insurer Regulation Regime (IRR). The Indian side provided an update on developments in the regulatory approach towards insurance in India aimed at enhancing ease of doing business and encouraging entry of new players.
Besides exploring opportunities to collaborate on Sovereign Green Bonds, the two sides explored the scope of leveraging asset management industries for deeper cross-border trade and investment. Sustainable finance was also taken up, including collaboration between central banks on climate scenario analysis and stress testing, as well as capacity building and spreading awareness on climate risk and sustainable finance.
Surbhi Jain, joint secretary in India’s department of economic affairs, and Richard Knox, director for international financial services at the UK treasury, co-chaired the dialogue. Along with the IUKFP, the officials discussed future areas of focus, including workshops, capacity building and conclusion of the cross-border trade and investment workstream.