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G20 Countries Aim to Build Policy Consensus on Crypto Assets

G20 Countries Aim to Build Policy Consensus on Crypto Assets

The G20 countries aim to build a policy consensus on crypto assets for better global regulation. "After the crypto meltdown which we have seen recently, it is clear that we need internationally agreed on standards regulation," said the International Monetary Fund (IMF)’s deputy managing director, Gita Gopinath.


The group of 20 (G20) countries’ flags fly against the blue sky


G20 Nations Discuss Crypto Regulation

The G20 finance and central bank deputies met for the first time under India’s presidency on December 13-15 in Bengaluru.

Ajay Seth, India’s economic affairs secretary, said at a news conference on Wednesday that the G20 nations aim to build a policy consensus on crypto assets for better global regulation. Seth was quoted by Reuters as saying: "The implications of crypto assets for the economy, monetary policy, and the banking sector should be studied to create consensus."

"The regulation should flow from the policy view taken. One of the priorities that have been put on the table is to help countries build a consensus for a policy approach to crypto assets."

The collapse of the crypto exchange FTX calls for better regulation of the crypto market. FTX filed for bankruptcy in the US on November 11, and the former CEO, Sam Bankman-Fried (SBF), was arrested in the Bahamas last week. The US government and regulators have filed several fraud charges against FTX and Bankman-Fried.

The members of the Group of 20 (G20) are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, the Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the UK, the US, and the European Union. The group represents around 85% of the world’s GDP.

Push for Globally Agreed Crypto Standards

The International Monetary Fund’s deputy managing director, Gita Gopinath, said on Thursday that the G20 under India’s presidency can make a big difference in primarily three areas: debt management, crypto regulation, and climate finance. Gopinath is currently in India to attend G20 meetings.

She explained that globally agreed norms are needed for crypto regulations, elaborating:

"After the crypto meltdown which we have seen recently, it is clear that we need internationally agreed on standards regulation. Progress on the front being able to be accomplished by 2023 would be a concrete outcome."

Seth also said on Wednesday that one of the key agenda items that the G20 will discuss is the global usage of central bank digital currencies (CBDCs). India’s central bank, the Reserve Bank of India (RBI), has started both wholesale and retail digital rupee pilots.

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