The adoption of the crypto roadmap by the finance ministers and central bank governors of the G20 nations is a positive step towards addressing the challenges posed by crypto assets. The International Monetary Fund and the Financial Stability Board have recommended that crypto assets should not become legal tender, but they should also not be banned. This is because prohibition is costly and difficult to enforce.
One of the reasons for the adoption of a crypto roadmap is the increasing number of frauds in the crypto world. These frauds are not confined to geographical borders, and therefore, reaching out to other nations for regulatory support is crucial. Recently, a major scam was uncovered by the Himachal Pradesh Police in India, leading to the arrest of two individuals and their accomplice. The scam, estimated to be worth Rs 400 crore, involved luring people to invest in a cryptocurrency called “Korvio Coin” with the promise of attractive returns. This scam operated like a Ponzi scheme, with early investors being paid returns from the money of later investors.
To prevent such scams and protect investors, it is essential to establish regulatory procedures for financial dealings involving crypto assets and digital currencies. Global coordination and information-sharing on crypto assets, as well as compliance with FATF standards, will help curb fraudulent activities. Last year’s collapse of FTX, one of the world’s largest cryptocurrency exchanges, left millions of investors worldwide with significant financial losses. Taking remedial steps to prevent such collapses is of utmost importance.
In conclusion, the adoption of the crypto roadmap by the G20 nations is a positive development in dealing with the challenges posed by crypto assets. Regulatory procedures and global coordination are necessary to protect investors and prevent fraudulent activities in the crypto world. The recent scam uncovered in India highlights the urgency of implementing remedial measures. By working together and sharing information, we can create a safer and more secure environment for crypto assets and digital currencies.