As per the recent publications from the economics times, the leaders are urging for the quick adoption of a global regulatory structure for digital assets in New Delhi, where the G20 members are meeting for a two-day summit.
G20 Leaders on Crypto
A consensus statement adopted by G20 leaders states that the framework will ease information flow between nations starting in 2027.
It reads: “We call for the swift implementation of the Crypto-Asset Reporting Framework (CARF) and amendments to the CRS [Common Reporting Standard]. We ask the Global Forum on Transparency and Exchange of Information for Tax Purposes to identify an appropriate and coordinated timeline to commence exchanges by relevant jurisdictions.”
A New Framework
Notably, as of 2023, there are 21 members in G20: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom, the United States, the European Union and the African Union. Hence, if implemented, the new framework will help two thirds of the global population that is collectively, the G20.
India Seeks Global Cooperation
Since the beginning of this year, the G20 has been discussing how to collectively regulate cryptocurrency. India’s finance minister, Nirmala Sitharaman, has been in the forefront of the global consensus for crypto regulation.
Crypto is a Concern for G20 Countries
The Financial Stability Board (FSB), an international organization that counsels G20 countries on international finance, finalized proposals for regulating global cryptocurrency-related activities back in July in response to the bear market of 2022 and a string of bankruptcy filings that have prompted a push for greater oversight in the crypto ecosystem. These proposals state that issuers would have to present a compelling legal justification for users’ quick redemption.
On August 1, India released a presidency note with ideas for a worldwide cryptocurrency regulatory framework. Additionally, PM Modi talked about the need of cutting-edge technologies like blockchain and cryptocurrency in an interview with Business Today.