On Saturday, the leaders of the G20 nations approved important suggestions from the Financial Stability Board (FSB) regarding how to regulate and oversee crypto assets.
A senior government official mentioned that because the G20 countries have supported the ideas of two important groups, the International Monetary Fund (IMF) and the Financial Stability Board (FSB), it looks like they’re setting up some rules for cryptocurrencies. So, a complete ban on this new technology is not very likely.
The official said that if one country wants to ban cryptocurrency, they can certainly do so. However, if most other countries don’t ban it, enforcing the ban becomes really hard.
The official mentioned that while it’s important that the G20 countries have agreed on regulations for cryptocurrencies, these rules may not work well unless all countries act together. In India, they will work on two fronts.
On one front, India will try to get all the G20 countries to agree on these rules. India suggested adding cryptocurrency to the G20 agenda. They also want countries outside the G20 to agree on these rules, making it a global effort.
On the other front, within India, the government will create its own rules based on what the global consensus is.
This is a change from before when India, especially the Reserve Bank of India, wanted to ban cryptocurrency.
The official mentioned that they have a plan ready, and now they need to work on putting it into action.
The Economic Affairs Secretary, Ajay Seth, talked about how the G20 leaders endorsed the Financial Stability Board’s recommendations. He said this is a significant step. He also mentioned that they’ve laid the foundation, and the next steps will be decided in the coming months.
The G20 will continue discussing cryptocurrency regulations in their upcoming meeting in October.
Currently, cryptocurrencies in India and in many other parts of the world don’t have many rules. In 2017, the Reserve Bank of India banned cryptocurrencies, but in 2020, the Supreme Court said that wasn’t allowed. In 2021, the government wanted to make a law for cryptocurrencies, but they said they’d only do it when there’s a global agreement. That’s why India made cryptocurrency a big topic during its time as the G20 President.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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