• The G20 is meeting to discuss the creation of a standard operating procedure (SOP) for crypto regulation.
• India’s Finance Minister Ms Nirmala Sitharaman has expressed strong focus on discussing crypto regulations during the G20 presidency.
• The G20 appears as a suitable platform, comprising the European Union and 19 other nations, with an imperative to address global economic concerns such as financial stability, climate change, and sustainable development.
G20 To Discuss How to Regulate Cryptocurrencies
The last decade and a half have seen a steep rise in the use and proliferation of cryptocurrencies, leading to a corresponding rise in interest in these digital assets. While some view cryptocurrencies as an opportunity for disruptive innovation, others remain concerned about the dangers they may impose. The G20’s member countries have also taken this up as a key agenda at their latest meetings, trying to arrive at a consensus on the regulation of cryptocurrencies.
G20 Focus on Bringing Standardization to Crypto Regulation
The G20 is meeting to discuss, among other themes, the creation of a standard operating procedure (SOP) for crypto regulation. These regulation SOPs will extend to not just cryptocurrencies but also accompanying assets. With India at the helm of the G20 as its President from December 1, 2022, to November 30, 2023, the country is expected to spearhead these key discussions. India’s Finance Minister Ms Nirmala Sitharaman has earlier expressed India’s strong focus on discussing crypto regulations during the G20 presidency. She has called for a global consensus on the matter to address threats like money laundering and terror funding.
Global Consensus Needed For Crypto Regulations
„There is an evolving consensus and that’s why in the G20, we are raising this issue and having detailed discussions with the members so that a standard operating protocol [SOP] emerges after the discussions,“ noted Indian FinMin Ms Nirmala Sitharaman „Crypto is heavily tech-led and less of human intervention,“ she added. „We are talking to all nations that if a regulation has to be framed then one country cannot frame it alone. So we are speaking to all for forming a standard operating procedure so that it is effective … All these are part of [the] discussion.“
G20 Suitable Platform To Address Global Economic Concerns
The process of discussion is ongoing within G20 countries – which together represent 75% of world trade; 85% of global GDP; and 75% of world population – making it an ideal platform for addressing global economic concerns such as financial stability; climate change; sustainable development; etc..
It remains unclear how exactly regulatory standards will be set but with Indian FinMin clearly expressing her support towards global consensus while leading talks within fellow member states – it seems likely that harmonized regulations will soon become reality when it comes to cryptocurrencies around most parts of globe.