G20 summit expects crypto regulation talks
Finance Minister, Nirmala Sitharaman planned to discuss crypto regulation in the upcoming G20 summit meeting.
New Delhi,UPDATED: Dec 12, 2022 17:17 IST
G20 summit expects crypto regulation talks
By Nidhi Bhardwaj: The issue of regulating cryptocurrency will be discussed at the upcoming G20 Summit, according to a statement released by the Union Minister of Finance on Sunday. Recently, Finance Minister, Nirmala Sitharaman, highlighted the crypto regulation need and stated that” cryptocurrency assets could be used for drug funding, terror funding, or system gaming, and regulation was the only way to address this.”
The first meeting of the Group of Twenty (G-20) Finance Track, led by India, will begin on Tuesday in Bengaluru. It will include senior finance ministry bureaucrats, central bank deputies from member countries, and Finance and Central Bank Deputies (FCBD).
The Ministry of Finance and the Reserve Bank of India will co-host this meeting from 13-15 December. The Sherpa Track meetings have already begun, with the first taking place earlier this month in Udaipur.
What’s the plan to be discussed?
Sitharaman further said, “If only one country implements the regulation, it will fail. We have not made any plans yet. So we need to bring the G20 members on board to see what can be done best.”
The minister also stated that “multiple international bodies are working on crypto asset regulations, which must be brought to the table for a meaningful discussion at the G20.”
Furthermore, on 13 October, Nirmala Sitharaman met with Mathias Cormann, Secretary-General of the Organisation for Economic Cooperation and Development, to discuss crypto regulation.
Debt, climate finance, and international taxation are all relevant issues that will also be a part of the discussion.
All eyes on regulation talks
WazirX vice president Rajagopal Menon stated that “cryptos have the potential to have a transformative effect by building financial inclusion in developing economies. Cryptos represent a significant hope for the unbanked masses. All you need is an internet connection to begin participating in a formalised economy.”
As per the sources familiar with the development of discussion points of the G20 summit, it mentioned the stake of developing countries’ disagreement with developed nations on the credibility of crypto. They further said that since crypto holds the cryptic and borderless nature of payment structure which makes them worry about their sovereign currencies in favour of the dollar.
The recent FTX collapse indeed shook and questioned the crypto market. On this, Amanjot Malhotra, Country Head of India, at digital assets exchange, Bitay, said, “Major regulations are in need after the collapse. He expects a different approach at the G20 summit by different countries on crypto as it holds a lot of potential.”
Credit: Source link
Comments are closed.