The first G20 Finance Ministers and Central Bank Governors Meeting under the Indian presidency, which will take place from February 23-25 in Bangalore, is expected to discuss cryptocurrencies, among other topics, Reuters said in a statement. report.
Indian Finance Minister Nirmala Sitharaman, who plays the host, previously said that the group is exploring whether it can collectively regulate cryptocurrencies.
Launch of Common Regulations
“We are talking to all the nations, if we can do some standard operating procedure that everyone follows to make a regulatory framework, and if it can be effective,” she was quoted as saying by Reuters on February 11. report.
He argued that given the sophisticated technologies involved, the G20 is exploring the possibility of establishing a common regulatory framework for cryptocurrencies that all nations can follow.
Facing tremendous pressure from 115 million strong crypto investors, on the one hand, and regulators who do not want to give digital assets any space in their financial system, on the other hand, the Indian government has often spoken about the need for a global . and a concerted approach to such regulations.
Regulatory crackdown
In recent weeks, cryptocurrency regulations have become a hot topic, with US regulators taking a tough stance against some of the services offered by leading companies.
For example, veteran crypto exchange Kraken was made to stop staking services for American investors and pay $30 million in a settlement. In another case, the New York Department of Financial Services (NYDFS) forced the issuer of BUSD, the third-largest stablecoin with $16 billion in circulation, to halt operations. Both have been accused of offering unregistered securities.
Additionally, the US Securities and Exchange Commission (SEC), which has filed a separate lawsuit against BUSD issuer Paxos, has warned other cryptocurrency firms with similar actions if they are found to be violating existing laws. Many, however, believe that in the absence of clear regulations, the SEC may be engaging in regulatory overreach.
Catch up with regulations
By contrast, the European Union passed the Crypto Asset Market Regulations (MiCA) in October 2022. The comprehensive nature of the regulations under MiCA, which have not yet entered into force, allows crypto asset service providers (CASPs) to adapt and meet the requirements before they become mandatory.
Both the US and the EU are members of the G20. Given this, it would be interesting to consider a discussion on crypto regulation at the next meeting of finance ministers and central bank governors.
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