IMF, US Show Support For India's Push To Regulate Crypto At G20 Meet

Earlier this month, the IMF published a list of action plans with nine suggestions to help regulate and treat crypto.

India has been pushing hard to develop a global crypto regulatory framework. ( Image Source :Getty )

The International Monetary Fund (IMF) and the United States have extended their support to India for its push as the G20 president to regulate cryptocurrency, reported Reuters. This happened in Bengaluru on Saturday during the concluding ceremony by the economic chiefs of the bloc after two days of discussion. India has been pushing hard for collective global attempts and plans to focus on endeavours to resolve the issues of crypto regulation across the world. The country has in the past spoken about matters and challenges posed by cryptocurrencies like Bitcoin.

According to the Ministry of Finance, there was a seminar conducted for G20 member countries to facilitate interaction on matters pertaining to developing common rules and regulations to ensure resolving challenges posed by cryptocurrency.

In an official statement by India on the issue of crypto assets, it said, "Despite the rapid evolution of the crypto universe, there is no comprehensive global policy framework for crypto assets."

The ministry of finance added, "Given the concerns over greater interconnectedness between crypto assets and the traditional financial sector as well as the complexity and volatility around crypto assets, policymakers are calling for tighter regulation."

According to the report by Reuters, US Treasury Secretary Janet Yellen has expressed her support for the regulation of the crypto industry.

On the sideline of the G20 meeting, Yellen said believes it is "critical" to develop a strong regulatory framework for the crypto industry, even though the US has not indicated any crypto bans, as cited in a report by Reuters.

Yellen said, "We haven't suggested outright banning of crypto activities, but it is critical to put in place a strong regulatory framework."

Yellen further added, "We're working with other governments."

However, after co-chairing a discussion with Union Finance Minister Nirmala Sitharaman, IMF Managing Director Kristalina Georgieva favoured the idea and option of imposing a ban on cryptocurrency.

Meanwhile, the BJP government led by Prime Minister Narendra Modi has been deliberating about laws to regulate or impose a ban on cryptocurrencies. Although, no final decision has been taken on the matter. Even the Reserve Bank of India has supported the notion to ban cryptocurrencies after linking them with a Ponzi scheme.

This month, the IMF also published a list of action plans with at least nine suggestions to help regulate and treat crypto.

According to the official document published on the IMF website, the first suggestion was that crypto assets should be granted legal tender status by countries across the globe. It said, "Safeguard monetary sovereignty and stability by strengthening monetary policy frameworks and do not grant crypto assets official currency or legal tender status."

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