For the best way to regulate the impact of cryptocurrency on monetary policies, economies, and the banking sector, the G20 countries have resolved to work toward a common goal.
As revealed by India’s economic affairs secretary, Ajay Seth, on Wednesday, the group intends to work around a common objective to implement a policy consensus for regulating the activities of the crypto industry.
The G20, known as the Group of Twenty, is an intergovernmental platform comprising 19 countries plus the European Union (EU). These countries are the world’s economic giants and work closely to address global economic and financial stability issues.
Recently, India hosted the G20’s latest meeting of the heads of financial regulators, which began on December 13 and ended on December 15. With the crypto industry seen as a highly unregulated space, the group considers a policy consensus among the different member states as the way forward.
Hence, each jurisdiction must develop a regulatory framework to mirror its peers. However, it is worth noting that the G20’s latest move about crypto regulations is due to FTX’s specular collapse. The shocking fall of the third-largest crypto exchange led to the loss of billions of dollars in user funds.
Under the request of the United States, the Bahamas government arrested the embattled former CEO of FTX on December 12. In addition, both governments have filed criminal charges against him, with the FTX founder likely to face extradition to the US.
Furthermore, the Southern District Court of New York indicted Bankman-Fried on eight criminal charges. In a separate move, the US Securities and Exchange Commission (SEC) has also charged the former CEO with initiating a scheme to commit fraud against investors at FTX.
A Call For Global Cooperation
The Finance Minister of India, Nirmala Sitharaman, believes that a combined effort is required to implement comprehensive crypto regulations effectively. Given the current turn of events, Nirmala noted that the digital asset industry would seriously harm global economic stability if regulations were not forthcoming.
In July, the minister revealed that the Reserve Bank of India (RBI) had classified cryptocurrency as a non-financial exchange tool because individuals and private entities issue it. She added that crypto assets are, by their design, borderless and require global collaboration to prevent supervisory arbitrage.
“Therefore, any regulatory framework that wants to succeed must be part of a sizable international partnership. This collaboration is necessary to evaluate the risks and benefits of digital assets to existing financial systems,” the minister added.
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