The G20 finance chiefs have reached an agreement on the need for global oversight of cryptocurrencies, according to a statement made by India’s finance minister, Nirmala Sitharaman. The ministers acknowledged the growing importance of digital assets, including stablecoins and central bank digital currencies (CBDCs), and called for coordinated efforts to ensure that these assets are not used for illegal activities such as money laundering and terrorism financing.Sitharaman, who chaired the virtual meeting of the G20 finance ministers and central bank governors, stated that “there is a consensus among the G20 members that crypto needs to be globally handled.” The ministers recognized the need for regulatory clarity to protect investors and maintain financial stability, while also promoting innovation and competition in the sector.
The statement comes amid growing concerns over the potential risks posed by cryptocurrencies and their impact on traditional financial systems. In recent years, the rise of decentralized finance (DeFi) and non-fungible tokens (NFTs) has raised questions about the regulatory oversight of these assets.
The G20 finance chiefs acknowledged that there is a need to “enhance the resilience and security of financial systems against malicious cyber activity,” and called for greater cooperation between public and private sectors to address these threats. They also emphasized the importance of international standards for data protection and privacy.
The statement further stated that the G20 countries will work towards developing a common approach to the regulation of cryptocurrencies, including stablecoins and CBDCs, in line with their domestic laws and regulations. The ministers recognized that different jurisdictions may have different approaches, but emphasized the need for coordinated efforts to ensure that global standards are met.
The G20 finance chiefs also called on international organizations such as the Financial Stability Board (FSB) and the International Monetary Fund (IMF) to provide guidance and support in developing regulatory frameworks for digital assets.
The statement marks a significant step towards greater regulatory oversight of the cryptocurrency sector, as governments and regulators around the world grapple with the challenges posed by these assets. The G20 finance chiefs’ commitment to coordinated efforts and international standards will be crucial in ensuring the safe and responsible growth of the cryptocurrency market.