The Indian government, after considering a blanket ban on cryptocurrencies, has taken a more proactive approach by engaging in discussions with stakeholders and participating in global initiatives. As the country presides over the G20, it has the opportunity to shape worldwide financial policies, including those related to cryptocurrencies. In line with this, the G-20 leaders’ statement has endorsed the recommendations of the Financial Stability Board (FSB) for regulating crypto-assets and has embraced a synthesis paper presented by the International Monetary Fund (IMF) and the FSB.
This Development is seen as a positive precedent for the global regulatory framework of the crypto industry. However, there are still challenges ahead, particularly in formulating regulations for the decentralized finance (DeFi) sector. While many countries have established cryptocurrency regulations, the same level of regulatory diligence has not yet been applied to DeFi. The International Organization of Securities Commissions (Iosco) is currently working on policy recommendations to address concerns related to market integrity and investor protection within DeFi.
Regulating DeFi is complicated due to its disruptive nature and the absence of a central authority. The CEO of an Indian crypto exchange suggests that international statutory bodies collaborate with Blockchain and crypto organizations to create cohesive regulations that do not stifle innovation. This would ensure common standards, clear guidelines, and enforcement of applicable laws.
Overall, the proactive approach taken by the Indian government in engaging with stakeholders and participating in global initiatives is a positive step for the crypto industry. However, regulatory challenges remain, especially in the DeFi sector, where establishing clear guidelines and determining the appropriate regulatory authority is a complex task. Collaboration between international statutory bodies and industry players is crucial to achieving a unified and effective regulatory framework for cryptocurrencies and DeFi..
#International #Statutory #Bodies #Join #Forces #Framing #Cohesive #DeFi #Rules
This Development is seen as a positive precedent for the global regulatory framework of the crypto industry. However, there are still challenges ahead, particularly in formulating regulations for the decentralized finance (DeFi) sector. While many countries have established cryptocurrency regulations, the same level of regulatory diligence has not yet been applied to DeFi. The International Organization of Securities Commissions (Iosco) is currently working on policy recommendations to address concerns related to market integrity and investor protection within DeFi.
Regulating DeFi is complicated due to its disruptive nature and the absence of a central authority. The CEO of an Indian crypto exchange suggests that international statutory bodies collaborate with Blockchain and crypto organizations to create cohesive regulations that do not stifle innovation. This would ensure common standards, clear guidelines, and enforcement of applicable laws.
Overall, the proactive approach taken by the Indian government in engaging with stakeholders and participating in global initiatives is a positive step for the crypto industry. However, regulatory challenges remain, especially in the DeFi sector, where establishing clear guidelines and determining the appropriate regulatory authority is a complex task. Collaboration between international statutory bodies and industry players is crucial to achieving a unified and effective regulatory framework for cryptocurrencies and DeFi..
#International #Statutory #Bodies #Join #Forces #Framing #Cohesive #DeFi #Rules
