India’s think-tank ORF says G20 should guide crypto, DeFi regulations
India-based Independent think-tank Observer Research Foundation has called for a coordinated effort from G20 countries in regulating digital assets.
In the Eurasia Review editorial published October 30, the organization called cryptocurrencies “the defining asset of the future internet economy”, and said it is imperative for G20 to take a leading role in coordinating policies around the space.
G20, the abbreviation for Group of 20, is an intergovernmental forum consisting of the world’s top 20 major economies. Members include G7 countries, the European Union, Russia, and 11 emerging economies.
The editorial mentioned the G20’s support for cryptocurrencies, and its decisive and joint reaction against Facebook-led global stablecoin Libra (now Diem).
“No so-called ‘global stablecoins’ should commence operation until all relevant legal, regulatory and oversight requirements are adequately addressed through appropriate design and by adhering to applicable standards,” the G20 leaders said at the Riyadh summit 2020.
Libra was supposed to be backed by several global reserve assets in order to offer global handling and remittance services. However, after the sharp reaction from G20, Facebook renamed Libra as Diem and backed it only with US Dollars.
The article mentioned that the G20 could take the lead in strengthening public-private partnerships when building elements of the next-generation financial structure system. ORF is expecting the second-generation Internet economy to be centered around cryptocurrencies, as opposed to the first-generation built by giant tech companies.
The ORF points out that Bitcoin, which is a representative example of the sector, is a decentralized ledger technology that is operated on a global scale. Hence, a single country can’t regulate it independently. It noted that G20 should be well aware of crypto regulations and provide guidance on the nature of technology and regulatory best practices.
ORF also urged the Organization for Economic Co-operation and Development (OECD) to work with the Financial Stability Board (FSB), the Financial Action Task Force (FATF), and the IMF to develop guidelines on cryptocurrency regulation.
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