India Pushing For Global Crypto Regulations With G20 Presidency

• The 172-page report touches on topics including blockchain-based assets.
• The volatility in the crypto assets market was cited as one of the major dangers.

This past Thursday, the Reserve Bank of India (RBI), India’s central bank, published its monthly Financial Stability Report (FSR) for the month of December. The 172-page report touches on topics including blockchain-based assets, CBDCs issued by governments, and decentralized finance (DeFi).

The RBI report acknowledges the difficulty of attempting to regulate innovative technologies and business models. After they have reached a systemic scale.

As per the report:

“To promote responsible innovation and to mitigate financial stability risks in crypto ecosystem, it is vital for policymakers to design an appropriate policy approach.”

Framework For Worldwide Regulation

The Reserve Bank of India also stated that in this light. When India holds the G20 chair, it is one of their top goals to create a framework for the worldwide regulation (or perhaps ban) of unbacked crypto assets, stablecoins, and DeFi.

The volatility in the crypto assets market was cited as one of the major dangers. That might possibly threaten global financial stability by the central bank. The Reserve Bank of India (RBI) has said that cryptocurrency assets are very volatile, “exhibit high correlations with equities,” and have declined when inflation has increased.

Moreover, the report goes on to say that FTX’s demise. And the accompanying sell-offs in the cryptocurrency markets “have highlighted the inherent vulnerabilities in the crypto ecosystem.”

India’s economic affairs secretary Ajay Seth said earlier last month. That the G20 countries want to develop a policy agreement on crypto assets in order to improve global regulation. Nirmala Sitharaman, India’s minister of finance, said in October that the country plans to include cryptocurrency in its G20 presidency agenda, with the expectation that a technologically-driven regulatory framework for crypto assets would be created.