G20 hopes that its joint policy consensus will encourage countries to roll out their own crypto regulatory frameworks.
Group of Twenty (or G20), an intergovernmental forum comprising 19 countries and the European Union, is reportedly looking to issue a joint policy consensus on crypto assets.
According to the news report shared by Reuters, the G20’s plans regarding cryptocurrencies were revealed by India's federal economic affairs secretary Ajay Seth. The intergovernmental forum aims to “inform better global regulation.”
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G20 countries represent 85% of the world's gross domestic product (GDP). The countries participating in the G20 include Australia, Canada, Saudi Arabia, the United States, France, Germany and other countries, as well as the European Union.
India currently serves as G20 president and is hosting a meeting with the finance and central bank deputies on December 13-15th in Bengaluru. The intergovernmental forum works on solving issues related to the global economy, including climate change mitigation, international financial stability and sustainable development.
During the second day of the forum, Seth stated that before launching policy consensus on crypto assets, G20 must study “economy, monetary policy and the banking sector” to make an informed decision regarding the matter.
The regulation should flow from the policy view taken. In fact, one of the priorities which have been put on the table is to help countries build a consensus for policy approach to the crypto assets.
The G20 believes that policy consensus could help various countries to issue their crypto regulatory frameworks.
It can be assumed that G20’s decision to issue a joint policy consensus on crypto assets comes after the dramatic downfall of cryptocurrency exchange FTX. It is worth noting that many governmental institutions decided to strengthen crypto-related policies in light of FTX’s collapse.