By Rajagopal Menon, ETMarkets
Cryptos have experienced a surge in popularity over the past few years, with their total market capitalization surpassing $1.5 trillion in April 2023. Despite its meteoric rise, the sector remains largely unregulated, leading to concerns about their potential impact on financial stability and integrity.
The lack of international cooperation has made it challenging for regulators to effectively govern the sector. Different countries have their own approaches to regulation, leading to a patchwork of regulations that can be confusing for investors and businesses alike.
However, recent developments suggest that international cooperation may be on the horizon. At the G20 summit, India, which holds the presidency of the group in 2023, proposed a common regulatory framework for cryptos.
The aim of this proposal is to address the risks associated with cryptos while still allowing for innovation and growth in the sector. This proposal was followed by a similar discussion at the just concluded G7 summit in April 2023, where finance ministers and central bankers from the world’s seven largest economies discussed the need for digital currency standards and crypto regulation.
