Industry Experts Urge G20 to Pursue Balanced Crypto Regulation
While the G20 countries have agreed on the need for a coordinated regulatory framework for crypto-wealth, ReturnByte spoke to a few industry leaders who emphasized the importance of a balanced approach to the evolving crypto-ecosystem, growth, safeguarding investors’ interests and combating illegal activities.
The G20 New Delhi leaders’ declaration reaffirmed the Financial Stability Board’s (FSB) high-level recommendations on the regulation and supervision of cryptoassets and global stablecoin arrangements, the importance of global consistency in preventing regulatory arbitrage.
In addition, it welcomed the IMF-FSB Summary Paper and Roadmap, which aims to create a comprehensive policy and regulatory framework to address the risks specific to emerging markets and developing economies, while complying with Financial Action Task Force (FATF) standards to combat money laundering and terrorism . funding.
However, the declaration stated that finance ministers and central bank governors will meet in October 2023 to discuss the implementation of the roadmap, strengthening the commitment to global cryptoasset regulation.
Industry perspective
Richard Teng, Head of Regional Markets at Binance, expressed his satisfaction with the roadmap presented by the IMF and FSB and praised the global organizations’ dedication to discussions on crypto regulation, reflecting the growing recognition of the transformative potential of blockchain technology.
“We recognize recent developments at the G20 meeting, where member countries have called for the rapid adoption of the Crypto-Asset Reporting Framework (CARF) and changes to the Common Reporting Standard (CRS), which highlight the importance of adopting a crypto-asset reporting framework. . Nations also plan to coordinate discussions on tax issues. This is a significant step forward in the global in regulating crypto and the entire Web3 industry under India’s G20 leadership, Teng said.
Meanwhile, Aditya Malik, Nasscom and CII Mentor hailed this significant development, highlighting the consensus among citizens of the G20 countries to use crypto as a medium. He said: “Although regulatory compliance has been trying to catch up for a long time, this latest development makes one thing clear: there is a consensus that regulation does not need to be excessive to prevent the spread of crypto, which was the case in the past, because it was not clearly understood, so the first the answer was to shut it down.”
Malik believes that by promoting understanding, ideation, dialogue, guidelines and policies, and effective implementation, a positive net result can be ensured for all stakeholders to achieve growth.
Rajagopal Menon, Vice President of WazirX, also emphasized the need for nations to work together to create a coordinated regulatory framework. According to him: “Such cooperation ensures that the huge potential of crypto-assets is exploited responsibly, safeguarding the interests of investors and promoting innovation.”
He advocated a regulatory environment that strikes a balance between too strict and too lenient – a Goldilocks regulatory zone. Menon said: “Overly restrictive regulation can stifle innovation and hinder industry growth, while overly permissive regulation can lead to increased potentially harmful activity. It’s about striking a delicate balance between risks and benefits. This means setting clear guidelines for the industry, promoting transparency and creating a unified approach to tackling illegal to combat operations.
Meanwhile, ZebPay CEO Rahul Pagidipati also thanked India’s G20 chairmanship for initiating global crypto discussions and believes that this effort will not only promote the growth of crypto activities in India but also set a positive precedent for the world.
He said: “Another major development is the effort to close data gaps and gain insights into the use of digital assets in payments. It allows decision-makers to adopt an informed and analytical perspective when formulating regulations. We are excited to contribute to the development of regulations that are not only responsible, but also effective in safeguarding the integrity of financial systems. We support a framework that prioritizes investor protection, anti-money laundering and cyber security.
