G20: Ban on crypto emerges as possibility as countries see need for regulation

moneycontrol.com:

Finance ministry officials and central bankers from G20 countries are seemingly in agreement when it comes to the regulation of crypto assets, with a complete ban on them also on the table.

On February 23, a day before the first meeting of G20 finance ministers and central bank governors in Bengaluru, a deputy-level closed-door session was held on crypto assets.

A statement by the Indian government, issued on February 25, said the discussion included talks on the need for systematic classification of crypto assets and financial stability issues and regulatory responses, among other subjects.

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India is looking to build an international consensus on the regulation of these assets, with the argument being that only a global collaboration would be effective given the cross-border scale, scope, and challenges presented by crypto.

Speaking to reporters on the sidelines of the G20 meetings here in Bengaluru, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said crypto assets were not money and could not be legal tender.

"There has to be very strong push for regulation (of crypto). And…if regulation fails, if you're slow to do it, then we should not take off the table or banning those assets because they may create financial stability risks," Georgieva said on February 25.

Georgieva's comments come a day after the IMF's Executive Board said that its directors "broadly welcomed" a framework proposed by a staff paper titled 'Policy Elements of Effective Policies for Crypto Assets'.

"Authorities may prohibit the listing of certain types of crypto assets, such as those that use technology to completely mask any