The development of global crypto regulation is a priority for the G20 under the Indian presidency-regulation
The development of global crypto regulation is a priority for the G20 under the Indian presidency-regulation
The Reserve Bank of India (RBI) says that one of the priorities for the G20 under the Indian presidency is to "develop a framework for global regulation, including the possibility of the ban on unsettled crypto assets, stable coins and defi". The Indian central bank warned that "turbulence on the crypto-asset market" is "the greatest risks that may be able to undermine global financial stability".
Indian central bank for cryptor regulation
India's central bank, the Reserve Bank of India (RBI), released its Financial Stability Report (FSR) for December on Thursday. The 172-page report contains discussions about crypto-assets, digital central bank currencies (CBDCs) and decentralized finances (defi).
"to regulate new technologies and business models after they have grown to a systemic level is a challenge," says the RBI report. "In order to promote responsible innovations and to reduce the risks of financial stability in the crypto ecosystem, it is crucial for political decision-makers to develop a suitable political approach." The Indian central bank continued:
In this context, one of the priorities under the Indian G20 presidency is to develop a framework for global regulation, including the possibility of prohibiting non-secured crypto assets, stable coins and defi.
The central bank called "turbulence on the crypto-asset market" one of the "greatest risks that may be able to undermine global financial stability". The RBI also said that crypto-assets were very volatile, "have high correlations with stocks" and have fallen with increasing Inflation.
The report also notes that the collapse of the FTX crypto exchange and the subsequent sales on the crypto market "showed the inherent vulnerabilities in the crypto ecosystem". It also emphasizes the Terra/Luna nucleus melt in May and the insolvency applications of several large crypto companies, including the crypto hedge fund Arrows Capital (3AC) and the crypto loan Celsius Network.
G20 members discuss crypto regulation
Ajay Seth, India's Minister of Economics, said at the beginning of this month that the G20 members strive to do this build up political consensus on crypto-assets for better global regulation. The Indian finance minister Nirmala Sitharaman said in October that Krypto would be part of the agenda of India during his G20 presidency, and added that she hope a technology-driven regulation framework for crypto-assets set up.
The members of the 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, Great Britain, the USA and the European Union. The group represents around 85 % of the global GDP.
The Indian central bank, however, has repeatedly recommended that all the non -state cryptocurrencies, including Bitcoin and Ether, be forbidden. Last week RBI-Gouvenur Shaktikanta warned that cryptocurrencies will cause this next financial crisis if they are not prohibited. However, India's finance minister said in July that both and the regulation of crypto can only be effective important international cooperation .
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