The question of regulating crypto assets on a global scale is one of the biggest challenges for the industry.
Many countries were too slow to react to what was happening in the crypto domain, and some bad actors managed to do their shenanigans under the radar.
We all know what happened next with the government being unable to stop it.
We do need stricter regulations for the sake of growing. People that want to join the industry will be more inclined to do so if they are not afraid of being scammed.
The international crypto agenda is taking shape
Just recently, FSB announced that it will prepare a package of recommendations for international financial institutions to regulate crypto and identify digital assets as subjects to national and international law.
It is a late move, but some steps toward adding more clarity have been made. The public announcement is just a way to inform everyone that the work is being done.
G20 is currently meeting in India, where the global summit will decide how to tackle the issue of cryptocurrencies.
The 19 most powerful economies in the world will be discussing cooperation and common goals in establishing a reasonable approach to cryptocurrencies and how to regulate them.
India is already collecting income taxes from users who interact with crypto, but the nation does not have any regulatory mechanisms for the industry to expand there.
The country does not issue licenses and only identifies crypto assets as something that should be regulated under the law. However, the framework is still far from ideal.
G20 will try to develop a set of guidelines that would help all economies to come up with functional regulatory mechanisms and prevent things like the FTX collapse in the future.
We need a ground for a discussion
Without any existing regulations, talking about their effectiveness is a futile endeavor. At the same time, having systems of oversight that will inhibit the growth of the industry is not desirable.
Hopefully, G20 can find a way to ensure that crypto businesses can continue scaling up and expanding while cooperating with established financial institutions.