Nirmala Sitharaman, the finance minister of India, which is now holding the G20 presidency, stated at a news conference on Tuesday that the Group of Twenty (G20) had accepted the high-level recommendations of the Financial Stability Board (FSB) on crypto asset operations and international stablecoin arrangements.After numerous charges of improper behavior emerged throughout the previous volatile year for cryptocurrency, the international standard-setter FSB urged for stricter regulations on Monday to protect clients’ investments and prevent conflicts of interest.The suggestions come after a survey in which traditional financial institutions urged for tighter crypto controls while firms like Binance and Coinbase cautioned that more stringent regulations might stifle innovation.
The Group of Seven (G7) and the G20 disagree on stablecoin regulation, although Sitharaman stated that the G20 supports the FSB’s recommendations for control of stablecoins.The declaration was made during the third meeting of central bank governors and finance ministers, which took place over the previous three days in Gandhinagar, Gujarat, in eastern India.According to Sitharaman, during the lengthy deliberations that went into Monday night, the Indian presidency paper on cryptocurrencies was also given.It’s unclear exactly what the message said, but according to local accounts, it was supposed to outline the efforts that different nations and institutions had done.
“Members also discussed the presidency note that India had prepared and noted that it would be an important input towards prioritizing areas of work essential for achieving a comprehensive cohesive and coordinated global policy and regulatory framework,” said Sitharaman.
It is unclear whether the G20 countries would agree to follow legislation or a template for crypto rules globally as a result of the FSB proposals and the joint synthesis paper of the FSB and International Monetary Fund (IMF), which is anticipated in September.