• UGI USER
  • Nov 23, 2023
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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.
Source: Medium

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.