G20 Governments Collaborating to Create a Unified Crypto Policy

In an effort to properly govern the asset class, the G20 intends to establish a consensus on cryptocurrency policy.

According to a report by Reuters, India’s federal economic affairs secretary Ajay Seth said on Wednesday that the G20 nations would analyse the consequences of cryptocurrencies for the economy, monetary policy, and the banking sector in order to establish a policy consensus.

The G20, sometimes known as the Group of Twenty, is an international forum composed of 19 nations plus the European Union. It strives to solve global economic concerns such as international financial stability, climate change mitigation, and sustainable development.

India now holds the G20 chair and hosted the group’s inaugural meeting of finance and central bank deputies in Bengaluru on December 13-15.

The crypto business is mostly unregulated, and a policy agreement might assist various governments in establishing a regulatory framework that is consistent with their peers.

Notably, the focus on crypto regulation follows the unusual failure of FTX, previously the third-largest cryptocurrency exchange, which caused retail customers to lose billions of dollars.

The Southern District of New York has indicted SBF on eight criminal charges, including wire fraud and conspiracy to misappropriate customer monies. Separately, the Securities and Exchange Commission accused SBF of “coordinating a plot to defraud FTX shareholders.”

India’s Minister of Finance, Nirmala Sitharaman, has said that a worldwide effort is essential for any successful regulation or prohibition. She said in July that the Reserve Bank of India (RBI) does not consider cryptocurrencies to be currencies since all contemporary currencies must be issued by the government or central bank.

“By definition, cryptocurrencies are transnational, necessitating international cooperation to avoid regulatory arbitrage. Therefore, any law for regulation or prohibition can only be successful after extensive international cooperation on the assessment of risks and benefits and the establishment of common taxonomies and standards “She said at the time.

The Indian government published its crypto tax proposals earlier this year, which included a proposal to tax crypto transfer earnings at a rate of 30%. In addition, purchasers of virtual digital assets will be subject to a 1% tax deduction at the source.

Also Read: Elizabeth Warren Presents Crypto Know-Your-Customer Legislation In Response To The FTX Crash