Let’s take an inclusive approach to the regulation of crypto assets
India’s finance minister Nirmala Sitharaman highlighted the centrality of international cooperation on crypto-asset regulation in the monsoon session of Parliament. This comes on the back of a tumultuous year for the crypto market, replete with margin calls and defaults. These adverse events have not translated to systemic risks because crypto assets are not yet deeply integrated with financial markets. However, financial regulators would do well to establish a framework for the oversight of crypto assets to prevent any possibility of future crises. The Financial Stability Board (FSB) recently announced that it will provide a roadmap to regulate certain crypto assets to G20 member nations in October, just in time for India’s presidency of the group, which begins later this year.