G20 members are working to develop a comprehensive global cryptocurrency framework.
India is finally ready to provide the much-awaited regulatory clarity on cryptocurrencies during its G20 presidency. As India prepares to host the upcoming G20 summit for the first time, regulation of cryptocurrencies will be a major focus.
Ahead of a meeting of the world’s most influential countries scheduled for later this week, Indian Finance Minister Nirmala Sitharaman confirmed that discussions are ongoing among G20 members to develop a comprehensive global framework on cryptocurrencies.
“Active discussions ongoing”
In February this year, India’s efforts to establish a regulatory framework for the asset class achieved a breakthrough as the country chairs the Group of 20 (G20), winning support from the International Monetary Fund and the United States.
During this period, Sitharaman discussed strengthening the capacity of multilateral development banks, addressing global debt vulnerabilities, and crypto assets with US Treasury Secretary Janet Yellen on the sidelines of the G20 finance ministers' meeting.
Most recently, Sitharaman said in an announcement during the Global Fintech Festival on September 5 that “active discussions are ongoing” regarding cryptocurrency regulation in the country.
“The Indian (G20) presidency has put on the table key issues related to regulation or the understanding that there should be a framework to deal with issues related to crypto assets.”
The finance minister stressed that “rich documents” covering a range of topics are currently being considered from organizations such as the IMF, the Financial Stability Board and the OECD. She also confirmed that both the IMF and the Financial Stability Board have submitted comprehensive documents on cryptocurrencies.
Sitharaman stressed that cryptocurrencies are both a potential threat and an opportunity. The minister stressed the importance of international cooperation in designing a responsible financial ecosystem that can effectively regulate cryptocurrencies on a global scale.
Indian Crypto Ecosystem
The Reserve Bank of India has consistently advocated for a ban on cryptocurrencies, even comparing them to Ponzi schemes. Despite the government’s hostile stance, adoption is on the rise in India, with a recent report suggesting the country could see more than 156 million users by the end of 2023.
In addition, some well-known industry players have long been paying attention to this emerging market.
Winklevoss Gemini-led cryptocurrency exchange Gemini has announced plans to build a new engineering center in Gurgaon, its second location in Asia. BlackRock, the world's largest asset manager, will partner with Jio Financial Services (JFS) to launch digital asset management services. #G20 #加密框架
