India’s G20 Presidency Fuels Momentum for Global Cryptocurrency Regulation

Photo of author

By Degen Lipsa

The G20 member countries are actively collaborating to establish a comprehensive global framework for cryptocurrencies. With India holding the presidency of the Group of Twenty (G20), the nation is preparing to bring much-needed clarity to the realm of cryptocurrency regulations. As India gears up to host its inaugural G20 summit, the regulation of cryptocurrencies is poised to take center stage.

Prior to the imminent gathering of the world’s most influential nations later this week, Nirmala Sitharaman, India’s Minister of Finance, has confirmed that G20 members are engaged in ongoing discussions to develop a comprehensive global cryptocurrency regulatory framework.

This significant progress began in February when India assumed the G20 presidency and garnered support from both the International Monetary Fund and the United States for its efforts to establish regulatory frameworks for cryptocurrencies. During this period, Sitharaman engaged in discussions with US Treasury Secretary Janet Yellen on the sidelines of the G20 finance chiefs meeting, addressing topics such as strengthening multilateral development banks, addressing global debt vulnerabilities, and matters related to crypto assets.

More recently, during the Global Fintech Fest on September 5th, Sitharaman announced that “active discussions are happening” regarding cryptocurrency regulation in India. She emphasized that India’s G20 presidency has brought crucial issues related to crypto assets to the forefront, emphasizing the need for a framework to address these issues.

The finance minister revealed that various “content-rich papers” from organizations like the IMF, FSB, and OECD are currently under consideration, covering a wide range of topics. She also confirmed that both the IMF and the FSB have submitted synthesis papers on cryptocurrencies.

Sitharaman underscored the dual nature of cryptocurrencies as both a potential threat and an opportunity. She stressed the importance of international collaboration in designing a responsible financial ecosystem capable of effectively overseeing cryptocurrencies on a global scale.

Despite the Reserve Bank of India’s consistent advocacy for the prohibition of cryptocurrencies and comparisons to Ponzi schemes, cryptocurrency adoption in India is on the rise. A recent report suggests that the country could have more than 156 million cryptocurrency users by the end of 2023.

Furthermore, notable industry players are eyeing the growing Indian market. The Winklevoss twins-led cryptocurrency exchange Gemini has announced plans to establish a new engineering hub in Gurgaon, marking its second venue in Asia. Additionally, BlackRock, the world’s largest asset manager, is set to launch digital asset management services in collaboration with Jio Financial Services (JFS).

Leave a Comment