The G20 nations want to develop a policy agreement on crypto assets to improve global governance. Gita Gopinath, the deputy managing director of the International Monetary Fund (IMF), stated that “it is evident that we need internationally agreed on rules on regulation” in response to the current crypto crisis.
G20 Countries Talk About Crypto Regulation
On December 13–15 in Bengaluru, the G20’s finance and central bank representatives convened for the first time under India’s chairmanship.
India’s economic affairs secretary, Ajay Seth, stated at a news conference on Wednesday that the G20 countries hope to reach a consensus on crypto asset policy to improve international regulation. Reuters reported Seth as saying: “The ramifications of crypto assets for the economy, monetary policy, and the financial sector should be investigated to create the consensus.”
The policy viewpoint adopted should inform the regulation. Developing a global consensus on a strategy for regulating crypto assets has been listed as one of the top goals.
Calls for improved regulation of the cryptocurrency business have grown since the demise of the cryptocurrency exchange FTX. On November 11, FTX filed for bankruptcy in the U.S.; last week, Sam Bankman-Fried (SBF), the company’s former CEO, was taken into custody. The American government and regulators have launched fraud-related allegations against FTX and Bankman-Fried.
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, the Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the U.K., the U.S., and the European Union are the countries that make up the Group of 20 (G20). The category accounts for over 85% of the global GDP.
Gita Gopinath of the IMF on International Crypto Standards
Gita Gopinath, the deputy managing director of the International Monetary Fund (IMF), stated on Thursday that the G20 under India’s presidency could advance in three areas: debt management, crypto regulation, and climate finance. For the G20 summit, Gopinath is now in India.
She elaborated on her point that standards that are accepted worldwide are necessary for crypto regulations:
We require globally accepted criteria for regulation in the wake of the recent crypto crisis. Making progress in that direction and being able to do that by 2023 would be a tangible result.
Seth added Wednesday that the global adoption of central bank digital currencies is one of the G20’s main agenda items (CBDCs). The country’s central bank, the Reserve Bank of India (RBI) has launched wholesale and retail digital rupee test programs.
According to India’s government official, the G20 countries aim to build a policy consensus on crypto assets for better global regulation.