“On India’s proposal to regulate crypto assets, there’s a greater acceptance among G20 members that any action on crypto assets must be global. G20 & its members agree that it’ll not be possible for a single country to deal with crypto assets,” Sitharaman tweeted.
The G20 member countries have agreed with India’s proposal for a coordinated global understanding to regulate crypto assets and a synthesis paper on it will be prepared soon, Finance minister Nirmala Sitharaman said after the second meeting of the G20 Finance Ministers and Central Bank Governors (FMCBG) in Washington.
During the meeting on April 12-13 on the margins of the 2023 Spring Meetings of the International Monetary Fund and the World Bank Group, the G20 countries also supported India’s initiative on strengthening multilateral development banks and managing global debt vulnerabilities. India is the G20 chair for 2023.
“On India’s proposal to regulate crypto assets, there’s a greater acceptance among G20 members that any action on crypto assets must be global. G20 & its members agree that it’ll not be possible for a single country to deal with crypto assets,” Sitharaman tweeted.
“IMF’s paper is being discussed, and FSB’s (Financial Stability Board) paper will be considered soon. A synthesis paper will be prepared based on IMF & FSB’s paper.”
There is a consciousness that crypto assets, particularly those not backed by any sovereign assets, can cause macroeconomic instability. “Today, I am very glad to have heard the European Central Bank chief Christine Lagarde speak about specific examples of how money has been routed into this operation, resulting in too many such companies who are getting involved in it raising questions of where the trail is,” Sitharaman said.
There will be a discussion in September and October, and in the “end of the day, we will see a roadmap being readied on how and what kind of understanding the members of the G20 have in this, and it can be taken further forward on specific actions of regulation as and when the G20 takes a call on it”, the finance minister said.
A cryptocurrency is a virtual currency that is secured by cryptography. Many cryptocurrencies are decentralised networks based on blockchain technology. This structure allows them to exist outside the control of governments and central banks. Like many countries, India doesn’t have a regulatory regime for cryptos despite these being covered under the tax net.
The Indian G20 Presidency in 2023 wants to broaden the G20 discussion on crypto assets beyond financial integrity concerns and capture the macroeconomic implications and widespread crypto adoption in the economy. This will require a data-based and informed approach to the global challenges and opportunities of crypto assets, allowing G20 members to shape a coordinated and comprehensive policy response.
Source: Indian Express