Member countries of the Group of 20 (G20) are currently considering creating a policy consensus on cryptocurrency, following the fiasco in the industry spurred by the collapse of Sam Bankman-Fried’s crypto exchange, FTX. The consensus would likely influence global approach to regulating digital currencies, according to India’s federal economic affairs secretary, Ajay Seth.
G20 looks to create policy consensus for crypto regulation
The proposal was made during the group’s first meeting of finance and central bank deputies hosted in India between December 13th – 15th. To achieve this, Seth mentioned that several factors need to be put into consideration, including the impact of cryptocurrency to the economy, monetary policy and the banking sector.
Regulation should come from the political point of view. In fact, one of the priorities that has been put on the table is to help countries reach consensus on the policy approach to crypto assets.Ajay Seth.
The development today comes as global regulators continue to amend and proposal new regulatory policies amid the recent FTX’s debacle. The crypto exchange filed for bankruptcy in November 11th, revealing billions in shortfall. The incident stirred a strong wave of liqudity crunch in the industry, with several businesses and services admitting exposure to the exchange.
France may tighten its crypto-friendly rules
France is one such country tightening its regulations on cryptocurrency in light of the FTX fiasco. In a proposal now passed by the Senate, a member of the French Senate’s finance commission, Hervé Maurey, eliminate a clause allowing cryptocurrency businesses registered in the country to operate with a full regulatory license until 2026.
The French jurisdiction is known as one of the friendliest cryptocurrency regions, but the country could be forced to adjust its pro-crypto polices if the bill is eventually passed by the Parliament in January 2023.
The FTX collapse was a detonation [that] contributed to a moment of reckoning and awareness. […] This led a number of players within the French system to consider that things needed to be supervised more tightly.Hervé Maurey.