Unified Crypto Policy Regulation Underway by G20 Countries

• Gopinath is in India for the moment while she attends the Group of Twenty summit.
• The policy stance will aid nations to reach an agreement on how to regulate crypto assets.

As India holds the rotating chair of the G20, the finance and central bank deputies convened in Bengaluru, India, from December 13-15.

As India’s economic affairs secretary Ajay Seth said at a press conference on Wednesday, the G20 countries are working to develop a policy consensus on crypto assets in order to improve global regulation. Seth added that the formation of the consensus should take into account the effects of crypto assets on the economy, monetary policy, and the financial industry.

Internationally Agreed Standards

The policy stance should inform the rules that are made. Thus aiding nations in reaching an agreement on how to regulate crypto assets is one of the proposals on the table.

There have been demands for further regulation of the cryptocurrency business after the FTX exchange failed. On November 11th, FTX filed for bankruptcy in the United States, and this week, the company’s former CEO, Sam Bankman-Fried (SBF), was arrested. FTX and SBF have been hit with various fraud allegations by U.S. authorities.

Gita Gopinath, the IMF’s deputy managing director, said on Thursday that the G20, with India as its president, can make strides in debt management, crypto regulation, and climate funding.

The Deputy managing director stated:

After the crypto meltdown which we have seen recently, it is clear that we need internationally agreed standards on regulation. Progress on that front being able to accomplish that by 2023 would be a concrete outcome.

Gopinath is in India for the moment while she attends the Group of Twenty summit. She elaborated on the necessity for internationally agreed-upon rules in crypto laws. Group of Twenty (G20) members of several key nations and roughly 85 percent of global GDP may be attributed to this cluster.