On Thursday, Economic Affairs Secretary Ajay Seth stated that India is working closely with the Financial Stability Board (FSB) to reach a consensus on regulations for virtual assets during India’s G20 presidency in 2023. The G20 plays an essential function within global economic governance and provides a major platform for international financial collaboration. It is crucial to note that India became the G20 president on December 1.
On January 15 and 16, Seth discussed an IMF paper on crypto assets with emerging economies in Delhi. Following the one-and-a-half-day workshop, they began drafting a report to be presented at the G20 Finance Ministers and Central Bank Governors meeting on February 23 in Bengaluru.
Seth declared that the workshop was designed to reach an agreement on cryptocurrencies. Additionally, he noted that India’s G20 presidency seeks to unify policy stances and regulatory pathways for digital assets among other members of G-20 through cooperation with the Financial Stability Board.
As India takes up the G20 presidency, Finance Minister Nirmala Sitharaman has consistently voiced her call for international teamwork to combat the effects of economic and financial developments in advanced economies. She also advocated for global regulation of crypto asset exchanges to counter terrorist funding networks effectively. As India’s G20 presidency began on December 1, the country’s minister enumerated eight topics for conversation, including global institution reforms and food and energy security.
In the past, Indian Prime Minister Narendra Modi also urged international unity in controlling cryptocurrencies.
The recent FTX crypto exchange collapse and the subsequent market selloffs have exposed some of the vulnerabilities in the crypto space.