G20 countries aim to build political consensus on crypto assets for better global regulation. “Following the recent cryptocurrency crash, it is clear that we need internationally agreed standards on regulation,” said International Monetary Fund (IMF) Deputy Director Gita Gopinath.
G20 states discuss crypto regulation
G20 finance and central bank representatives met for the first time under India’s chairmanship on December 13 and 15 in Bengaluru.
Ajay Seth, India’s economic affairs secretary, said at a press conference on Wednesday that the G20 nations aim to build a political consensus on crypto assets for better global regulation. Noting that the implications of crypto-assets for the economy, monetary policy and the banking sector should be studied to build consensus, Reuters quoted Seth as saying:
The regulation should derive from the policy position taken. In fact, one of the priorities that has been put on the table is to help countries build a consensus for a political approach to crypto assets.
The collapse of the crypto exchange FTX has led to calls for better oversight of the crypto market. FTX filed for bankruptcy in the US on November 11, and former CEO Sam Bankman-Fried ( SBF ) was arrested this week. The US government and regulators have brought several fraud charges against FTX and Bankman-Fried.
The members of the Group of 20 (G20) are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, UK, USA and the European Union . The group represents about 85% of world GDP.
Gita Gopinath from the IMF on globally agreed crypto standards
International Monetary Fund (IMF) Deputy Managing Director Gita Gopinath said on Thursday that the G20 under the chairmanship of India can make progress in three areas: debt management, crypto regulation and climate finance. Gopinath is currently in India to attend the G20 meetings.
She explained that globally agreed norms are needed for crypto regulations, elaborating:
After the cryptocurrency crash we witnessed recently, it is clear that we need internationally agreed standards of regulation. Progress on this plan that could achieve this by 2023 would be a concrete result.
Seth also said on Wednesday that one of the key agendas the G20 will discuss is the global use of central bank digital currencies (CBDCs). India’s central bank, the Reserve Bank of India (RBI), has launched wholesale and retail digital rupee pilot programs.
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