Here's everything you need to know 🔥
1️⃣ G20's Stance on Crypto:
👉 At the recent G20 Summit in New Delhi, discussions focused on regulating #crypto instead of outright bans.
👉 This gives hope to crypto businesses.
2️⃣ IMF-FSB Synthesis Paper:
👉 This paper released by the International Monetary Fund (IMF) and G20’s Financial Stability Board (FSB) focused on understanding digital assets and reducing data gaps.
👉 It provides guidelines and standards but doesn't introduce new policies.
3️⃣ Data Collection by 2027:
👉 The paper aims for global financial entities to gather detailed data on various #crypto assets used for payments by 2027.
👉 This will be categorized by type, sector, and country.
4️⃣ Industry Feedback:
👉 Experts believe the paper is in the "Goldilocks Zone" - not too strict or lax. They expect the Indian government to take this seriously, seeing potential for step-by-step regulation.
👉 Experts praise India's proactive approach in understanding virtual digital assets. They believe this means discussions about bans are behind us.
👉 The initiative to understand digital asset usage was welcomed by the industry and it is believed that it will help in forming balanced policies.
5️⃣ Potential Ban Complexities:
👉 The document indicates that blanket bans on #crypto are not effective.
👉 They're expensive, complex, and due to the borderless nature of crypto, challenging to implement.
6️⃣ Global Perspective:
👉 Out of the G20 nations, only around 15 have clear #crypto regulations.
👉 Examples include Canada, the US, Europe, and Japan.
👉 India currently lacks a clear regulatory framework.
7️⃣ Universal Tax Policy:
👉 There's a suggestion for a global, consistent tax policy for #crypto.
👉 Given its global nature, experts believe a standardized approach would be beneficial.
8️⃣ Summary:
👉 These discussions indicate a shift towards regulation rather than prohibition, providing hope for the #crypto industry's future.
👉 The industry awaits incremental steps towards a regulatory framework.
