The G20 countries plan to create a convention on policy guidelines for cryptocurrencies to better regulate the asset class.
Nirmala Sitharaman push for global coordination
Nirmala Sitharaman, the finance minister for the Union, claimed on Thursday that the Group of 20 (G20) members were more in agreement that any new legislation about cryptocurrencies must be coordinated internationally.
“I’m happy to report that all G20 members now acknowledge that any action taken on crypto assets must be worldwide. I believe the G20 has responded swiftly and properly to the crypto threat “During a press conference held following a meeting of the G20 finance ministers and governors of central banks, Sitharaman said.
The minister said, “The G20 and its members agree that it will not be able to create an autonomous, standalone country dealing with the crypto assets.”
Reporters were informed by Sitharaman that the group had willingly reacted to the problem. During India’s G20 presidency, a “synthesis paper” on issues relating to crypto assets will be discussed.
India has remained steadfast in its desire for a coordinated international effort to address the issues raised by cryptocurrencies like bitcoin, and the finance ministry said in February that a conference for G20 members had been convened to examine how to develop a uniform framework.
India’s actions thus far in the crypto sector
Ajay Seth, India’s Federal Economic Affairs Secretary, said that the G20 countries will study the implications of cryptocurrencies on the economy, monetary policy, and the banking sector to develop a regulation consensus in December 2022. He also said that the regulation should be informed by the policy standpoint chosen. One of the aims is to assist countries in reaching a consensus on a strategy for their stance on cryptocurrencies.
The G20, usually referred to as the Group of Twenty, is made up of the EU and 19 additional countries. It makes an effort to solve important issues in global economics such as maintaining the integrity of the international financial system, cutting greenhouse gas emissions, and sustainable development.
The first meeting of the G20’s deputy leaders for finance and central banking took place in Bengaluru on December 13/15/ 2022, when India is now the G20 president. Because the crypto industry is mostly unregulated, a policy consensus might help different jurisdictions develop a legal framework that is by their peers. As a result, several EU countries have decided to implement or are planning to enact some kind of legislation regarding cryptocurrencies.
The historic fall of FTX, previously the third-largest cryptocurrency exchange, which resulted in billions of dollars in losses for retail users, has significantly intensified the spotlight on cryptocurrency regulation.
Sam Bankman-Fried, the creator of the notorious exchange, is said to have been imprisoned by The Bahamas government in December 2022 as a result of “getting information from the United States that indicated that it has filed charges against SBF and is extremely likely to request his extradition.”
SBF has been legally accused by the Southern District of New York of eight offenses, including conspiring to conduct wire fraud and stealing client money. Separately, SBF was charged by the Securities and Exchange Commission with “orchestrating a scheme to deceive stock investors in FTX.”