At the G20 conference, a significant decision was made regarding cryptocurrencies. A global law is required to control cryptocurrencies, all the nations taking part in the G20 Summit at Bharat Mandapam in Pragati Maidan, New Delhi, have agreed. To do this, a worldwide regulatory framework must be established.
This international regulatory framework will be developed by the IMF-Financial Stability Board (FSB). Nirmala Sitharaman, the minister of finance, informed the media of this information and added, “We are closely monitoring the rapid developments and risks in the cryptoasset ecosystem.” According to experts, establishing a global regulatory framework will aid in reducing cryptocurrency abuse. Right now, there is a risk that cryptocurrencies will be used to finance terrorism and other bad things.
The goal is to keep risks under control. Any country can allow higher risks if they want, or ban them if they want, but whatever they do, they should not go below a certain level of regulation, or else trade will shift to other jurisdictions,” the official explained, explaining the G-20 push for timely and consistent implementation of FSB recommendations globally to avoid regulatory arbitrage.
IMF chief statement
On Sunday, IMF managing director Kristalina Georgieva stated that “more work lies ahead” in the domain of digital currency and crypto assets. “To that end, the G-20 has tasked relevant institutions with improving crypto asset regulation and supervision — the IMF is contributing to proposals for a comprehensive policy framework; and advancing the debate on how central bank digital currencies may impact the global economy and financial system.”