After three days of intense negotiations at the G-20 meetings in Bangalore, India has announced that a new synthesis paper jointly produced by the International Monetary Fund (IMF) and Financial Stability Board (FSB) will serve as the basis for global cryptocurrency regulations. As this year’s G-20 president, India is leading the charge to create an international regulatory framework for cryptocurrencies. The news comes after several nations expressed their commitment to protecting users from potential risks associated with cryptocurrency trading during these discussions.
Paper To Be Written Is Significant for Global Crypto Regulation
The G-20 finance ministers and central bank governors held numerous deliberations to lay out a foundation for globally unified cryptocurrency regulations. A synthesis paper will be handed in during India’s presidency of the G-20, which finishes by September when Indian Finance Minister Nirmala Sitharaman plans to welcome leaders from all over the world with her press conference.
When asked if a consensus on global cryptocurrency regulation would be established during India’s G-20 presidency, Finance Minister Nirmala Sitharaman replied that they were currently undergoing the study process to have educated conversations. She went on to state that “something should develop” once the FSB releases its paper in July, which will culminate with a synthesis paper by September.
Cryptocurrency Regulations Are A Subject That Needs Serious Consideration
During the meeting, Canada’s central bank governor warned other members that crypto assets should not be endorsed by any regulatory body without a comprehensive strategy and implementation system. Furthermore, the World Bank reiterated that feedback from all developing nations must be taken into consideration when creating cryptocurrency regulations. Minister Sitharaman reinforced these sentiments during her address.
India’s Central Bank Governor, Shaktikanta Das, declared that the G-20 nations have undergone an immense transformation in their viewpoint on crypto assets over the last year. This metamorphosis was further heightened by several significant crypto companies, such as FTX exchange, filing for bankruptcy. There is now a widespread acknowledgment of the risks related to digital currencies, according to Mr. Das.
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