New Delhi: Union Finance Minister Nirmala Sitharaman has announced that there is a growing consensus among Group of 20 (G20) member countries that new regulations on crypto assets must be globally coordinated. She made the statement during a news conference after a meeting of G20 finance ministers and central bank governors. According to Sitharaman, the G20 has responded quickly to the challenge posed by crypto assets.
Sitharaman went on to state that the G20 and its members agree that it is not feasible for an independent country to deal with crypto assets on its own. Instead, a collective global effort is necessary to address the challenges posed by cryptocurrencies such as Bitcoin. India, which holds the G20 presidency, plans to take up a “synthesis paper” on matters related to crypto assets during its presidency.
The Finance Ministry of India has held a seminar for G20 member states to discuss how to come up with a common framework for dealing with crypto assets. The International Monetary Fund (IMF) and the Financial Stability Board (FSB) have also been working on the issue, and papers from both organizations will be presented at the July meeting.
Sitharaman’s announcement comes as the Indian government continues to debate whether to regulate or ban cryptocurrencies. The Reserve Bank of India has said that cryptocurrencies should be banned, as they are similar to a Ponzi scheme. However, the government has not yet made a final decision on the matter.
The G20’s recognition of the risks associated with crypto assets is an important step towards developing a coordinated and comprehensive policy approach. By considering macroeconomic and regulatory perspectives, the G20 is moving closer to a collective solution to the challenges posed by cryptocurrencies. The global coordination of regulations on crypto assets will not only ensure a level playing field for market participants but also help to prevent illicit activities such as money laundering and terrorism financing.
In conclusion, the growing consensus among G20 member countries that new regulations on crypto assets must be globally coordinated is a positive development. The G20’s recognition of the risks associated with crypto assets is an important step towards developing a comprehensive policy approach. As the G20 continues to work towards a collective solution to the challenges posed by cryptocurrencies, it is essential that governments and regulators work together to ensure that the regulatory framework is effective, efficient, and globally coordinated.
