G20 finance ministers and central bankers recently discussed the regulation of stablecoins and DeFi in the name of financial stability.
Since the beginning of the year, the regulation of the crypto industry has been at the heart of the debate. In recent weeks, in fact, several financial experts and many leaders have called for tighter control of the industry’s activities. A way for states to intervene in an ecosystem that until now is the preserve of a few investors.
G20, a special attention on stablecoins!
The Indian government announced this earlier last month. The first meeting of the G20 under its presidency would be an opportunity to discuss a concerted regulation of the crypto-asset markets.
According to the Indian Minister of Finance, this choice is motivated by the “need” to take into account the economic change implied by the cryptos. The latter operate indeed, outside of any direct intervention of governments.
The goal of the G20 states is therefore to adopt a general standard on cryptos that has the value of law for them. A harmonized text, which would not only bind them, but would especially be imposed on crypto companies intervening or wishing to intervene on their territory.
We are discussing with all countries to see if we can establish a standard operating procedure followed by all. This is to create a regulatory framework, and if this can be effective, said the minister.
This international meeting has somewhat “passed under the radar”, notes the expert lawyer of the sector, Hubert de Vauplane. However, it did take place on February 23 and 24 in Bangalore.
Particular attention was paid to stablecoins (…) The issue of DeFi and non-centralized markets in particular should be noted,” he notes on LinkedIn on the basis of the minutes published by the G20.
For the Kramer Levin lawyer, this meeting and the nature of the exchanges undoubtedly point to “even stronger regulation in the months and years to come”.
Members of the major G20 powers welcome the work undertaken by the Financial Stability Board (FSB) and international standard-setting bodies on the crypto-asset ecosystem. The goal:
Ensure that this sector, including stablecoin, is closely monitored and subject to strong regulation, oversight and supervision to mitigate potential risks to financial stability.”
