The Financial Stability Board, the International Monetary Fund and the Bank for International Settlements have committed to presenting a basis for the regulation of private cryptocurrencies, IMF Managing Director Kristalina Georgieva said.
“In that world of private issuance, there has to be more regulation,” Georgieva said on the sidelines of the G-20 meeting on Saturday.
Conclusions from the IMF board discussion on the issue include:
- “Crypto assets are nothing, they cannot be accepted as legal tender,” Georgieva said.
- There has to be a very strong drive for regulation.
- If regulation fails, or if implementation is slow, then banning those assets should not be ruled out because they may create financial stability risks.
in a statement, India which heads the G-20, said the discussions helped start a broader dialogue on crypto assets. He also raised "several pertinent policy issues that policymakers and regulators need to look closely at."
“In addition to assessing the consequences of crypto assets for the broader economy, there is also an existential question as to whether crypto assets are really the optimal solution to existing challenges in global financial systems,” India said.
India has had a hot and cold relationship with crypto assets. In 2018, the central bank removed cryptocurrency startups from the country's payment network and last year announced a new tax regime.
Under that, a 1% transaction tax was imposed and has decimated volumes on crypto exchanges.
— With the assistance of Anirban Nag
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/cloudfront-us-east-2.images.arcpublishing.com/reuters/UZM2EQKX6JJXTAUJYJ4QB4NR7I.jpg?w=75&resize=75,75&ssl=1 "India’s push to regulate crypto gains IMF, U.S. support at G20")
