• The Group of 20 (G-20) is hesitant to create global crypto regulations due to recent bank collapses.
• India, as the current president of the G-20, has the power to ask international bodies tasked with framing the global crypto rules to factor in recent bank collapses.
• An IMF and FSB synthesis paper will form the basis of coming global crypto rules.
Recent Bank Collapses Underscore G-20 Hesitance on Crypto
The Group of 20 (G-20), an international forum for governments from 19 countries and the European Union, is hesitant to create global crypto regulations due to recent banking collapses. As the current president of the G-20, India has the power to ask international bodies tasked with framing said global crypto rules–such as International Monetary Fund (IMF) and Financial Stability Board (FSB)–to consider these collapses when creating said rules.
India Holds Agenda Setting Power
As president of the G-20, India holds agenda setting powers that could affect not only how these regulations are formed but also what they should include; this includes asking international bodies like IMF and FSB to factor in recent banking collapses when forming their rules. This agenda setting power was announced at a meeting in Bangalore on Saturday.
Synthesis Paper Will Form Basis of Global Crypto Rules
A synthesis paper jointly produced by IMF and FSB will be used as a basis for forming global crypto regulations. The paper is expected to provide insight into potential implications for economies or financial systems posed by digital assets such as cryptocurrencies.
U.S Commodity Futures Trading Commission Involvement
Christy Goldsmith Romero, Commissioner at U.S Commodity Futures Trading Commission, will explore policy fallout from 2022 market crash along with advance CBDCs and other topics related to cryptocurrencies regulation during a discussion titled “Global Policy & Regulating Digital Assets” at Consensus 2021 on May 24th – 26th .
Amitoj Singh’s Summary
CoinDesk’s regulatory reporter covering India, Amitoj Singh explained that recent bank collapses have not changed or accelerated G-20 approach on framing global crypto regulation, it has only underscored their hesitancy towards it which could delay its implementation despite pressure from different countries around world wanting cryptocurrency regulation in place soonest possible time frame