The Group of 20 (G20) member countries have disclosed a proposal to develop a cryptocurrency policy consensus that will likely inform global digital asset industry legislation.
Following the rise in popularity of digital assets and its implications for the economy and monetary system, member nations have pushed for a policy agreement, according to India’s government economic affairs secretary Ajay Seth on December 14.
Furthermore, the agreement intends to investigate the role of cryptocurrencies in the financial industry. The regulation strategy was unveiled in India during the G20 international meeting of finance and central bank representatives.
“The regulation should flow from the policy view taken. In fact, one of the priorities which have been put on the table is to help countries build a consensus for policy approach to the crypto assets,” said Seth.
The G20’s emphasis on cryptocurrency regulation
Notably, the G20 is an intergovernmental forum comprised of 19 economies and the European Union, with India serving as president. Indeed, with India at the helm of the body, the country is expected to dominate in defining global crypto regulations.
Given that the sector is highly unregulated globally, the possibility of policy consensus aims to assist different jurisdictions in establishing a regulatory framework. The decision follows the collapse of the FTX crypto exchange, which resulted in criminal charges being filed against founder Sam Bankman-Fried.
Overall, with the collapse marred by allegations of fraud, there has been a call to effectively regulate the sector.
India’s crypto regulatory environment
It is worth noting that India is attempting to establish a native cryptocurrency regulatory framework. However, the government has been chastised for its crypto regulatory framework, which industry players have described as stifling.
Simultaneously, as Finbold noted, after the Reserve Bank of India (RBI) released its concept note on a central bank digital currency (CBDC), the institution faced criticism from crypto players who said the government was intended to destroy the sector.
Indeed, the RBI has backed the cryptocurrency ban, pointing out that a CBDC is perfect for fighting the dominance of private digital assets like Bitcoin (BTC).
Author: Crypto Tech News 24