The G20 which is an intergovernmental forum consisting of the European Union and 19 countries has come up with a decision of having the same set framework for all the countries to help combat various risks that are associated with cryptocurrency.
The vision for these policies is put forward by Nirmala Sitharaman, the Finance Minister of India. Under India’s G20 presidency, the world has seen a lot of crypto crises like FTX and Binance collapse which led to a mass selloff in the market and created a liquidity crisis.
The Finance Minister believes that proper regulation for all countries is a must needed step. Moreover, she also said that G20 aims to bring smaller countries like Sri Lanka and Ghana out of debt crises and hyperinflation because it is feared that if these countries are not brought out of debt, there may be a major impact on the world economy like a recession.
Safeguarding Investors rights
The policies that will be framed will protect the rights of the investors. Moreover, crypto exchanges and service providers may be required to provide annual reports and balance sheets to the regulators. This step will make sure that the chances of cryptocurrency fraud and bankruptcy of companies will be minimum.
India’s G20 presidency will end on November 30 2023, which will give the leaders of these countries roughly 7 months to plan and execute the uniform policies for cryptocurrency regulation.
India and Crypto
The Indian government has always been sceptical when it comes to cryptocurrency. In 2022, the government decided to impose a 30% tax on crypto profits which led to a huge impact on the crypto community. Following this move, a lot of Indian investors liquidated their holdings which created a ripple effect and a lot of companies were forced to shut down.