G20 CRYPTO ASSETS OVERSIGHT
Why in the News ?
- IMF, FSB, and FATF to update G20 and other nations on implementing the crypto assets roadmap, fostering global coordination.
- Timeline Clarity: No set timeline for implementation; clarity expected during the early stage of the Brazilian presidency.
Global Crypto Asset Regulation
- Inclusive Approach: Ensure effective regulation by involving G20 and FSB members, addressing potential loopholes in controlling crypto assets.
- Legislative Framework Template: Initial phase involves providing a template for nations to develop their legislative frameworks.
| Crypto-currency Cryptocurrency is a decentralized digital or virtual form of currency that employs cryptography for security, making it resistant to fraud. It operates on blockchain technology, a distributed ledger, ensuring transparency, and is not controlled by any central authority. |
Recommendations Against Ban
- IMF and FSB Policy: September policy paper recommends a licensing regime instead of an outright ban on crypto assets.
G20 Finance Discussions
- Multilateral Development Banks: Emphasis on building effective multilateral development banks and exploring innovative finance collaborations.
- DPI Collaboration: India signs MoUs with seven countries for digital public infrastructure and advances discussions for cross-border acceptance of UPI QR.
- Global Social Impact Fund: PM Modi proposes a $25 million initial contribution for a global Social Impact Fund, with detailed contours to be revealed soon.
A complete system has to be setup for effective regulation of cryptosystems and its application.