G20 meetings of the financial officers will likely discuss a common approach to cryptor regulations: report

G20 meetings of the financial officers will likely discuss a common approach to cryptor regulations: report

The first meeting of the finance ministers and central bank governors of the G20 under Indian presidency, which takes place from February 23 to 25 in Bengaluru, is to discuss cryptocurrencies, Reuters said in a Report .

The Indian finance minister Nirmala Sitharaman, who plays the host, said beforehand that the group checks whether it can regulate cryptocurrencies collectively.

pitch for common regulations

"We speak to all nations whether we can create a standard work process that is followed by everyone to create a regulatory framework and whether it can be effective," Reuters quoted in a report of February 11.

She argued that in view of the highly developed technologies, the G20 explore the opportunity to create a common regulatory framework for cryptocurrencies that can follow all nations.

In view of the enormous pressure of 115 million strong crypto investors on the one hand and the supervisory authorities who do not want to give any space in their financial system, on the other hand, the Indian government has often talked about the need for a global system and concerted approach to such regulations.

regulatory raids

In the past few weeks, cryptor regulations have become a burning topic, with the US supervisory authorities taking a hard attitude towards some of the leading companies.

For example, the long-serving crypto exchange was made to hire the staking services for US investors and pay $ 30 million in a comparison. In another case, the issuer of Busd, the third largest stable coin with outstanding $ 16 billion, was made to hire the company by the New York Ministry of Finance (NYDFS). Both were accused of not offering registered securities.

In addition, the US Securities and Exchange Commission (SEC), which submitted a separate lawsuit against Paxos, the issuer of Busd, have warned other crypto companies with similar measures when it is determined that they violate existing laws. However, many believe that, in the absence of clear regulations, the SEC may indicate regulatory exaggeration.

obtain regulations

In contrast, the European Union approved the Ordinance on Markets for Crypto-Assets (Mica) in October 2022. The completeness of the regulations under Mica, which have not yet come into force, enables crypto-asset service providers (CASPS) to adapt and adhere to the requirements before they become mandatory.

Both the USA and the EU are members of the G20. Against this background, a discussion about crypto regulation at the upcoming meeting of finance ministers and central bank governors would be interesting.

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