The G20 finance ministers and central bank governors have agreed that global policy responses to cryptocurrency regulation are necessary.
According to India’s finance minister, Nirmala Sitharaman, who co-chaired the meeting alongside Reserve Bank of India Governor Shaktikanta Das, stressed that the discussion highlighted the need for a coordinated understanding on regulating crypto-assets globally.
She emphasized that the implications of crypto assets can impact both emerging and developed economies, and therefore, global policy responses to crypto-assets are required. Sitharaman also noted that crypto assets can potentially cause macroeconomic instability.
During the press briefing following the G20 finance ministers and central bank governors meeting, Sitharaman said that there is a greater acceptance among all G20 members that any action on crypto assets will have to be global.
She further explained that it is not going to be possible to have an independent standalone country dealing with crypto assets and that it has to have a globally coordinated understanding on how to go about regulating crypto assets.
Sitharaman also referred to the joint “synthesis paper” on crypto by the International Monetary Fund (IMF) and the Financial Stability Board (FSB), saying that the IMF’s paper is being discussed and that the FSB’s paper will also be taken up.
A synthesis paper will be prepared from the IMF paper and the FSB paper, and a discussion will take place in September and October.
She stated that at the end of the day, a roadmap will be readied on how and what kind of understanding the members of the G20 have, and it can be taken further forward on specific actions of regulation as and when the G20 takes a call on it.
Sitharaman stressed that the G20 and its members have come to an agreement that crypto oversight has to be globally handled.
She reiterated that any action on crypto assets will have to be global and that the G20 has responded fairly with alacrity on the challenges posed by crypto assets.
She also highlighted the importance of the IMF’s paper and the FSB’s paper in the discussion and emphasized that there is a need for a synthesis paper that will provide a roadmap for the G20 members.
G20 leaders Global Crypto Regulation
The discussion on crypto regulation among the G20 members is a significant development in the cryptocurrency world, as it highlights the need for global coordination on regulating crypto assets.
It also emphasizes the importance of a coordinated approach to tackling macroeconomic instability caused by crypto assets. As the crypto market continues to grow, it is essential for global policymakers to work together to develop a framework that will support innovation while ensuring consumer protection and maintaining financial stability.