The first meeting of finance ministers and central bank governors under India’s presidency for G20 is taking place in Bengaluru from February 23 to February 25. Cryptocurrency are expected to be discussed among other significant issues. Nirmala Sitharaman, the Indian Finance Minister and the meeting host, indicated that the group is considering regulating cryptocurrencies collectively. As reported by media channels, she said, “We are talking with all nations, if we can make some standard operating procedure which everyone follows to make a regulatory framework, and if it can be effective.”
Sitharaman argued that because sophisticated technologies are involved, G20 is exploring the possibilities of implementing a common regulatory framework for cryptocurrencies that all nations could adhere to. India has been under extensive pressure to establish comprehensive regulation for cryptocurrencies. The Indian government has repeatedly emphasized the need for a global and concerted approach to such regulations.
In recent weeks, crypto regulations have become one of the most talked-about topics. In January, Todayq News reported that at the WEF summit in Davos, global central banks and regulators called for an urgent rollout of basic regulations targeting cryptocurrencies like Bitcoin. The bankers at the summit opined that the evolving nature of the cryptocurrency sector and the speculative nature of digital assets means that regulators need to step in and enact the necessary laws.
US regulators have taken a tough stance against some of the services offered by leading companies. Recently, the well-known crypto exchange Kraken was forced to stop staking services for US investors and pay $30 million in a settlement.
In a similar regulatory move, Paxos, the issuer of the third-largest stablecoin (BUSD), was forced to stop operations by the New York Department of Financial Services (NYDFS). The Securities and Exchange Commission (SEC) also has issued a Wells Notice to the said exchange regarding the BUSD.
In Europe, the EU approved the Markets in Crypto Assets (MiCA) in October last year; but the regulation has not been enforced. It has to be noted that the US and the EU are both members of G20, which makes the discussion on crypto regulation at the upcoming meeting of finance ministers and central bank governors more interesting considering their currently instituted regulatory policies.