G20 countries aim to build political consensus on crypto assets for better global regulation. “After the crypto debacle we’ve seen recently, it’s clear that we need internationally agreed standards for regulation,” said Gita Gopinath, Deputy Managing Director of the International Monetary Fund (IMF).
G20 countries discuss crypto regulation
G20 Finance and Central Bank MPs met for the first time under the chairmanship of India on December 13-15 in Bengaluru.
India’s Economic Affairs Secretary Ajay Seth said in a press conference on Wednesday that the G20 countries aim to build a political consensus on crypto assets for better global regulation. Noting that the impact of crypto assets on the economy, monetary policy and the banking sector should be explored to build consensus, Seth was quoted by Reuters as saying:
Regulation should be based on accepted policy. In fact, one of the priorities that has been put on the table is to help countries build a consensus for a policy approach to crypto assets.
The collapse of crypto exchange FTX has led to calls for better regulation 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 filed 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, Great Britain, USA and the European Union. The group represents around 85% of the world’s GDP.
IMF’s Gita Gopinath on Globally Agreed Crypto Standards
International Monetary Fund (IMF) Deputy Managing Director Geeta Gopinath on Thursday said the G20 under India’s chairmanship could make progress in three areas: debt management, crypto regulation and climate finance. Gopinath is currently in India to attend the G20 meetings.
He explained that globally agreed norms are needed for crypto regulations, detailing:
After the crypto meltdown we’ve seen recently, it’s clear that we need internationally agreed standards for regulation. Progress on that front, which 2023 can achieve, will be a concrete result.
Seth also said on Wednesday that one of the top agendas for the G20 is the global use of central bank digital currencies (CBDCs). India’s central bank, the Reserve Bank of India (RBI), has launched both wholesale and retail pilot programs for the digital rupee.
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