The G20 finance ministers and central bank governors have agreed that crypto regulation cannot be confined to one part of the world, said India’s finance minister. “Any action on crypto assets will have to be global,” she stressed, adding that the G20 finance chiefs’ discussion on crypto was “very substantive.”
Insights from G20 Finance Chiefs on the Regulation of Crypto
During a press briefing on Thursday, the Indian Finance Minister Nirmala Sitharaman shared insights about the G20's conversation on cryptocurrency regulation. This discussion took place after a meeting between G20 finance ministers and central bank governors, the International Monetary Fund (IMF), and the World Bank on the sidelines of the Annual Spring Meetings.
Co-chaired by Sitharaman and the Reserve Bank of India (RBI) governor Shaktikanta Das, the meeting addressed issues concerning the regulation of cryptocurrencies and their associated challenges. The G20 finance ministers and central bank governors discussed the oversight of cryptocurrencies and the unique obstacles that come with it.
The Indian finance minister said:
The discussion on crypto assets highlighted that it couldn’t be confined to one part of the world. Its implications can impact both emerging & developed economies. Thus, global policy responses to crypto-assets are required.
"I am glad to say that there is a greater acceptance among all G20 members that any action on crypto assets will have to be global," Sitharaman said, adding that "the G20, I believe, has responded fairly and promptly" to the issues posed by crypto assets.
In response to a question at the press conference, the Indian finance minister said, "The G20 and its members agree that it's not going to be possible to have an independent standalone country dealing with crypto assets and that there has to be a globally coordinated understanding on how to go about regulating crypto assets."
In reference to the IMF and the Financial Stability Board's (FSB) work on a joint "synthesis paper" on crypto, India's finance minister said:
The way in which we are seeing this pan out during our presidency is the IMF’s paper is being discussed. FSB’s paper also will be taken up, and a synthesis paper will be prepared from the IMF paper and the FSB paper both put together.
"End of the day, we will see a roadmap being prepared on how and what kind of understanding the members of the G20 have in this, and it can be taken further forward on specific actions of regulation as and when the G20 takes a call on it," Sitharaman explained. A discussion will take place in September and October.
The Indian finance minister also stated that crypto assets had the potential to trigger macroeconomic instability, saying:
Today, we are in the position to see how countries are now recognizing that it is not just a crypto asset regulatory issue, where countries will have to come together, but … There can be issues of macroeconomic stability itself.
Finally, Sitharaman stated that G20 crypto conversations were "very important," adding that all G20 finance heads agreed that crypto monitoring "must be handled globally."
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source: news.bitcoin.com