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G20’s vision for the future: A unified crypto market framework

4 min read
  • A global framework to regulate crypto assets could come sooner than we think

  • The move, initiated by the Indian G20 presidency, would set the stage for a unified regulatory future

  • India’s proactive stance on crypto regulation is nothing new - the country has consistently amplified the call for global crypto synergy

By Akash Mahendra, 18 September, 2023

As we transition to a world increasingly dominated by digital assets, regulation has remained a gray area, which has threatened the US’ status as the world’s leading crypto hub. Yet as the G20 forum in New Delhi wrapped up, there was an air of fresh optimism. 

During the two-day event, G20 nations made significant progress, and pushed for a cross-border framework for crypto assets, embracing proposed guidelines by the International Monetary Fund (IMF) and the Financial Stability Board (FSB).

By 2027, a mere four years from now, these nations have pledged to exchange information under a unified framework. The wheel is in motion and, with it, the future of how we perceive and interact with crypto assets.

Two primary pillars from the blueprint underpin this framework:

1️. Crypto-Asset Reporting Framework (CARF): An instrument to highlight the somewhat nebulous world of crypto transactions and their actors.

2️. Amendments to the Common Reporting Standard (CRS): This is not just about change, but about elevation. A unified call to raise the bar of reporting, making it more standardized, and most crucially - coherent.

Regulation for a global future: Mandate shows clear and shared vision

The G20’s collective vision reflects a unified front among global economic powers, recommendations highlighted a unified perspective:

  • No more blanket bans: The universal nature of cryptos means blanket bans are off the table.

  • The same goes for full bans: Full bans could be seen as a harbinger for adverse repercussions.

  • Licensing consensus: There’s unanimous support for the licensing of crypto service providers, which promotes transparency and accountability. 

  • FATF standards are non-negotiable: Implementing the Financial Action Task Force’s (FATF's) standards for virtual assets, primarily focused on anti-money laundering and counter-terrorism financing, is essential.

Adding to this, by the close of 2025, the Financial Stability Board (FSB) has committed to reviewing the implementation status of these recommendations on both crypto assets and stablecoins. Each FSB member nation has been tasked to draft individual rules or legislations to echo these recommendations by the end of 2025.

Embracing the crypto revolution

At a macro level, this is monumentally significant. The world's major economic powers are acknowledging the inevitable dominance of crypto assets. They recognise that crypto has transcended national borders, which presents a paradigm shift in the way we perceive and utilize value in the digital age. This transformation underscores that:

  • Crypto doesn’t bow to borders. One Bitcoin holds its value, no matter the geography.

  • Digital assets have a seamless cross-border nature. This is an attribute that understandably sends ripples through conventional capital flow notions.

  • Crypto is here to stay. Banning crypto isn't on the table anymore. The strategy now is control.

Yet beneath this facade of unity, we can’t ignore the tremors. There are fractures, subtle yet significant, that underline this cohesion. There's an ebb and flow of global politics, indicating that this united front may have more layers than immediately visible. This framework is as much about structure as it is about political nuance.

As the G20 pioneers a path forward, we're left to ponder: Is this the dawn of a new era for crypto? Or is this a stage where political posturing takes center stage? Only time will tell. But one thing is certain: crypto's place in the future will be undeniable.

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