Finance chiefs from the Group of 20 (G20) wrapped up two days of talks in Bengaluru, where India’s proposal to regulate cryptocurrencies gained support from both the International Monetary Fund (IMF) and the United States. India has been calling for a collective effort to deal with the problems posed by cryptocurrencies, such as bitcoin. The country’s finance ministry organized a seminar for G20 member states to discuss developing a common framework.
US and IMF endorse strong regulatory framework
U.S. Treasury Secretary, Janet Yellen, said it was “critical” to establish a strong regulatory framework for cryptocurrencies. However, she stated that the United States had not proposed outright bans. Speaking to Reuters on the sidelines of the G20 meeting, Yellen said, “We’re working with other governments.” The IMF’s Managing Director, Kristalina Georgieva, agreed, telling reporters that banning cryptocurrencies should be considered. Earlier, the IMF had proposed a nine-point action plan for how countries should deal with crypto assets, urging them not to give cryptocurrencies legal tender status.
Indian Prime Minister, Narendra Modi’s government, has been discussing the possibility of drafting a law to regulate or even ban cryptocurrencies for several years. The Reserve Bank of India has urged the government to ban cryptocurrencies, as it believes they are akin to a Ponzi scheme.
The collapse of numerous crypto exchanges and assets over the past few years has made regulating cryptocurrencies a priority for authorities, according to the IMF. The fund warned that doing nothing was now “untenable.”
