The crypto scene has been in disarray lately and India is taking the initiative! With India taking the G-20 presidency in 2023, there is a great opportunity to come to a policy consensus on the regulation of cryptocurrencies. Recently, the Economic Affairs Secretary Ajay Seth gave an interview to PTI, where he stated that India is working with the Financial Stability Board (FSB) so that a roadmap for the regulation of virtual assets can be agreed upon during India’s G-20 presidency.
Discussions on IMF Paper
Invited by India, representatives from emerging economies had an engaging discussion on an IMF paper on crypto assets during a meeting held in Delhi on 15 and 16 January. The idea is that during India’s presidency, a policy stance and the roadmap for regulation should be broadly agreed upon among all the G-20 members.
India’s Finance Minister Nirmala Sitharaman has made it known on numerous occasions India will press for collective efforts to handle the aftermath of events in advanced economies, as well as global regulation of crypto assets to preclude terror funding during its G20 tenure, which began on December 1! When targeting eight critically-considered topics for discussion, those included reforms in international organizations and food and energy security.
In light of this, the Indian Government is keen to highlight the immense potential of the current educational and socio-economic benefits of the usage of digital assets. It strives to ensure beyond its G20 presidency these digital assets are managed responsibly by creating a secure and regulated industry that benefits citizens and businesses.
What do US Regulators have to say?
US regulators recently shared a joint statement raising their worries about crypto-asset risks to the banking system and their potential to impact financial stability. According to a recent Economic Survey, Bitcoin, Ether, and other virtual currencies have been disqualified as securities.
The rising concern has pushed the policy agenda of many countries, calling for a coordinated international effort to monitor and regulate cryptocurrencies.