Global powers are pushing for an international crypto policy. India, as the head of the G20, is to lead the way to develop a new approach to virtual assets and forge a corresponding legal framework.
The country has already commenced cooperation with the Financial Stability Board (FSB) – an international organization overseeing the global financial system – to concoct a roadmap for regulating cryptocurrencies. The consensus is expected to be reached by the end of India's G20 presidency on November 30 this year.
India is also collaborating with the International Monetary Fund (IMF) regarding a new crypto policy, economic affairs secretary Ajay Seth revealed yesterday in an interview with PTI agency, signaling the institution's direct engagement in developing a comprehensive approach to regulate virtual assets.
Read also: IMF releases crypto regulation framework, warns against legal tender status
He also added that an IMF paper on virtual assets was already discussed at the workshop held in Delhi on January 15 and 16. The discussion will continue during the G20 Finance Ministers and Central Bank Governors session in Bengaluru scheduled for February 23.
India's guiding role in devising a global scheme to handle cryptocurrency is not exactly the best news for financial freedom buffs. The country has long had a tough stance on virtual assets, expressed concerns about their role in funding terrorism, and imposed a harsh tax policy on crypto money.
The news about the India-led global effort to regulate crypto follows the last month's joint statement by the Federal Reserve, Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) regarding the risk cryptocurrencies pose for the banking system.
Summing up all of the above, 2023 may turn out to be disruptive for the disruptive crypto industry.
