Members belonging to the Group of 20 (G20) have announced plans to develop an crypto policy consensus, which will be used to guide the global digital asset industry regulations.
The member states presented the concept of a consensus in response to the growing digital assets’ popularity and the implications for the economy and money system, India’s federal economy and economic affairs minister Ajay Seth stated on the 14th of December.
In addition, the agreement seeks to examine the role of cryptocurrency within the banking industry. The proposed regulatory framework was revealed at the G20 intergovernmental meeting of central bankers held in India.
“The regulation must be based on the policies that is taken. In reality, one of the top priorities that are being put to the test is to assist countries come up with a consensus policies regarding digital asset class,” said Seth.
In addition, it is worth noting that the G20 is an intergovernmental body comprised of 19 economies and also the European Union, with India as the president. With India in charge of the organization it is set to lead in the development of the global crypto regulations.
The potential for the policy consensus will help various jurisdictions to establish a regulatory structure, as the industry is largely unregulated worldwide. This decision follows the financial collapse of FTX that led to charges of criminality against its founder Sam Bankman-Fried.
In the end, as the collapse is being beset by accusations of fraud There have been calls for regulating the industry efficiently.
The crypto regulatory landscape in India
It is important to note that India is currently working towards the enactment of an appropriate local framework for cryptocurrency regulation. But the country has been subject to criticism for its cryptocurrency regulation policy, with industry actors saying it is ineffective.
In the same vein as as reported by Finbold, following that the Reserve Bank of India (RBI) issued its initial note regarding a central bank’s cryptocurrency ( CBDC) it faced a criticism from crypto gamers who claimed the government was trying to destroy the crypto industry.
In fact it is true that the RBI has backed the prohibition of cryptocurrencies noting that CBDC CBDC is a great way to counter an influence by private digital assets, such as Bitcoin (BTC).