The Group of 20 (G20) nations, comprising the world’s largest economies, is considering the possibility of collectively regulating cryptocurrencies, Reuters said in a report.
According to India’s Finance Minister Nirmala Sitharaman, the advanced technologies behind virtual assets require global discussion to determine if regulation is necessary. The issue is set to be raised at the upcoming G20’s Finance Ministers and Central Bank Governors Meeting during 23-25 February 2023 in Bengaluru. It would be the first meeting of finance ministers and central bank governors under India’s presidency of G20.
India has been considering a law to regulate cryptocurrencies for more than a year now but has not yet made a final decision. Indian Prime Minister Narendra Modi has stated on several occasions that a collective effort is needed to address the challenges posed by cryptocurrencies. The Reserve Bank of India (RBI) has repeatedly expressed concerns about cryptocurrencies, labeling them as similar to a Ponzi scheme. However, India recently appointed Nandan Nilekani as the co-chair of a India’s G20 Digital Outreach Taskforce. Nilekani has been a known crypto supporter.
The G20 is exploring the feasibility of creating a standard operating procedure for cryptocurrencies that can be followed by all nations.
This comes at a time when the possession of virtual assets in the form of cryptocurrencies has gained popularity among Indian investors, especially the youth. The government is keen to prevent any loss of faith in investments owing to unregulated crypto trading and investments.
While the core concept of cryptocurrency relies on its deregulated status, calls for its regulation have gained momentum in recent times. At the upcoming G20 conference, leaders of the world’s most significant economic hubs are expected to discuss the roadmap for the regulation of cryptocurrencies.
