An interesting development unfolded last weekend at the G20 summit in India, as the international cooperative commenced what seemed like a concerted endeavour towards strict, comprehensive global regulation on crypto assets. Drawing on enquiries from Noelle Acheson, former head of research at CoinDesk and current curator of the Crypto Is Macro Now newsletter, we find the need for closer global scrutiny of this novel financial system. The move represents an implicit recognition of cryptocurrencies’ borderless nature, widespread accessibility, and significant staying power.
However, the initiative has revealed some discordant subplots, interspersed within what seems to be a relatively unified front. Rather than being conclusive, this assembly could generate noise for the sake of sound. India, in particular, presents an intriguing case. Renowned for its long-standing advocacy for globally coordinated crypto regulation since it took the G20 presidential baton in December last year, India has surfaced with a somewhat paradoxical disposition towards cryptocurrencies.
Facing a booming crypto market with growing traction, India’s Reserve Bank of India (RBI) issued a circular in 2018 prohibiting banks from transacting with crypto-related entities, a decision overturned by the Supreme Court in 2020. Despite RBI’s apparent disapproval, recently the institution permitted banks to service crypto companies after performing the required due diligence – a reminiscent scenario of position with in the U.S.A. However, enactment of a 30% crypto tax in 2022 marked a landmark acceptance, validating cryptocurrency activities in an economic context. The catch? The RBI’s renewed insistence on a full crypto ban, with its officials unleashing scathing criticisms.
The peculiarities extend beyond India. The celebrated G20 body comprises not necessarily the world’s largest economies but rather those deemed fit for regulatory influence. The G20’s authority, mainly endorsed by its member states, is always in flux, the credibility in question with dubious memberships, and geopolitics at play. Adding to this, the G20’s previous initiatives have seldom generated impactful outcomes, making its current stance on cryptocurrency regulation an uncertainty.
As Brazil prepares to preside over the G20 come December—a country demonstrating considerable crypto market support—there’s a chance we might witness a shift in focus. The country’s crypto-adoption efforts and flexible regulatory measures are a far cry from India. While the G20’s current posture on crypto regulation may seemingly pose a restrictive stance, it does not necessarily translate into a significant threat to the crypto ecosystem. Instead, it secures another step towards the global acceptance of cryptocurrency, even as it subtly acknowledges the finite reach of its influence within this domain.
Source: Coindesk
